EUR/USD flirting with lows, just below 1.1250 level

The greenback selling pressure seems to have abated for the time being, dragging the EUR/USD pair closer to session lows just below mid-1.1200s.

Spot remained under some selling pressure for the second consecutive session and extended its corrective slide from fresh yearly tops touched on Friday, in the aftermath of weaker-than-expected monthly US jobs data.

Traders even shrugged off upbeat Euro-zone Sentix investors confidence data released during early European session and the pair maintained mildly softer tone amid modest US Dollar recovery, despite of the ongoing slide in the US treasury bond yields. 

With the recent US economic data-disappointment, investors seemed convinced that the Fed is unlikely to adopt a faster rate-tightening cycle. However, expectations for an eventual rate-hike action on June 14 might have prompted traders to take some profits off the table near yearly tops. 

Moreover, traders also refrained from initiating any fresh bullish bets and seemed to await for the next big fundamental trigger - ECB monetary policy meeting on Thursday, which would help determine the next leg of directional move for the shared currency. 

With a relatively lighter US economic docket, featuring the release of JOLTS job openings, seems unlikely to provide an fresh impetus, with broader market sentiment surrounding the greenback acting as an exclusive driver of the pair's momentum on Tuesday.

Technical levels to watch

A follow through weakness below 1.1235 level could extend the corrective slide towards the 1.1200 handle, below which the pair is likely to head back towards retesting 1.1165 support area.

On the upside, 1.1275-80 region remains immediate strong hurdle, which if conquered has the potential to lift the pair beyond the 1.1300 handle (Nov. 9 swing high) towards its next major resistance near 1.1355-60 zone.