EUR/USD off lows, still with a bearish bias

EUR/SD has risen more than 20 pips from the lows, on a quiet US session. The pair bottomed earlier at 1.1165, the lowest in a week and currency it trades at 1.1185/90, 15 pips below yesterday’s closing price 

The greenback remains resilient in the market today, supported by rising US bond yields. Treasuries are falling despite the FBI-Trump drama and UK election results. 

The euro continues to correct lower against the US dollar after testing multi-month highs two days ago. It failed to rise on top of 1.1300 and started to correct lower. Now the euro is about to end the week in negative territory. The ECB meeting did not boost the common currency in the market. Draghi’s optimism was offset by a downward revision of inflation estimations. 

ECB: Balancing act

ECB Watch: A first tweak in the forward guidance

Levels to watch 

According to Valeria Bednarik, Chief Analyst at FXStreet, the US Dollar needs to break the 1.1160 static immediate support to open the doors for an extending of the slide with a scope for a decline to 1.1110/20. 

Currently the pair is testing the 1.1190 area where the 20-hour moving average stands. A consolidation on top could add momentum to the euro for a test of 1.1200. Above the next resistance level might be located at 1.1225 and 1.1255 (June 1 high).