EUR/USD dips to lows near 1.0870, US data, Fedspeak eyed

EUR/USD witnessed a sharp sell-off over the last hour, and dropped to fresh session lows near 1.0870, before recovering some ground to now revert towards 1.09 handle.

EUR/USD: Bears guard 1.0920 fencing                                                             

Currently, EUR/USD trades -0.09% lower at 1.0888, having failed to resist above 1.09 handle once again. The EUR/USD pair shaved-off gains and turned negative below 1.09 handle, mainly on the back of cross-driven weakness. The cross in the EUR/GBP accelerates to the downside on the back of fresh buying seen around the GBP, with no main catalyst seen behind the upmove.

While stalled USD correction against a basket of six major currencies, also exerts downward pressure on the main currency pair. Markets now await fresh incentives from the US economic data and Fedspeak due on the cards in the American session.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0957 (5-DMA). A break beyond the last, doors will open for a test of 1.0975 (20-DMA) and from there to 1.1000 (round figure). On the flip side, the immediate support is placed at 1.0865 (Nov 10 low) below which 1.0848 (multi-month low) and 1.0820 (March low) could be tested.

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