FXStreet (Mumbai) – The EUR/USD pair resumed its bearish momentum in the early European dealings, reversing a brief recovery seen during overnight trades, now pushing the major to fresh session lows below 1.12 handle.
EUR/USD rejected at 1.1215
The EUR/USD pair trades -0.17% lower at fresh session lows of 1.1174, notwithstanding 1.12 barrier. The main currency stalled a brief recovery and slipped back into the negative territory as the USD bulls jumped back into the bids riding higher on increasing 2015 Fed rate hike bets backed by last week’s Yellen’s hawkish comments, and impressive US Q2 GDP figures (3.9% vs. 3.7% expected).
EUR/USD remains vulnerable as the divergence in the monetary policy outlooks between both continents becomes more prominent with upbeat US fundamentals pointing to a probable Fed rate hike this year. While ECB Draghi and his team continue to ponder over further easing measures amid slowing EZ price pressures.
Markets now await key US economic data flow to be reported in the week ahead while Central bankers’ speeches, including Yellen’s speech on Thursday will be closely eyed for further direction.
Later in the day, Fed’s favourite inflation gauge and pending home sales data will be tracked for fresh incentives. Besides Fed policymakers’ speeches will be also awaited amid a data –empty EUR calendar today.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1215 (Today’s High), above which gains could be extended to 1.1231 (Sept 25 High) levels. On the flip side, support is seen at 1.1120 (Sept 7 Low) below which it could extend losses to 1.1103 (Sept 23 Low) levels.
(Market News Provided by FXstreet)