EUR/USD flirts with 3-month lows near 1.1050

The EUR/USD pair is seen wavering in a narrow range since Tokyo-open, after having struck fresh three-month troughs at 1.1042 levels.

EUR/USD trades below all major DMAs

Currently, EUR/USD almost unchanged at 1.1050, heading for a test of 1.1000 – key psychological support. The main currency pair consolidates the bearish momentum and looks vulnerable, despite persisting broad based US dollar correction.       

The greenback is seen reversing a part of yesterday’s massive rally against its major rivals, as markets resort to profit-taking heading into an action-filled US calendar today. Moreover, the upcoming Fed minutes is likely to show a unanimous support for a rate hike this year, which may trigger another USD rally and weigh heavily on the major.

Calendar-wise, second-tier economic data in the German WPI and Eurozone industrial production will be published in the European session. While US docket holds a string of Fed speaks and US JOLTS job openings data ahead of the key FOMC meeting minutes.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.1162/67 (5 & 100-DMA). A break beyond the last, doors will open for a test of 1.1200 (20-DMA) and from there to 1.1231/50 (daily R2/ psychological level). On the flip side, the immediate support is placed at 1.1024 (daily S3) below which 1.1000 (key psychological support) and 1.09559 (Jul 27 low) could be tested.