FXStreet (Edinburgh) – The common currency has surrendered its initial gains vs. the greenback, now dragging EUR/USD to test the 1.1020 region.

EUR/USD supported around 1.1000

After a bullish attempt to the 1.1060 area earlier in the European session, the pair has sparked a correction lower although the psychological handle at 1.1000 has proven to be quite a tough support in early trade.

In the data space, the German IFO came in mixed for the current month, although market participants and spot have largely ignored it. In the meantime, the FOMC meeting on Wednesday emerges as the main event for the greenback, with traders staying vigilant on the potential timing of the Fed’s lift-off.

EUR/USD levels to watch

As of writing the pair is up 0.03% at 1.1021 facing the next resistance at 1.1074 (8-month uptrend) followed by 1.1117 (200-day sma) and then 1.1153 (61.8% Fibo of 1.0808-1.1713). On the flip side, a breakdown of 1.1000 (psychological level) would target 1.0915 (low Jul.7) and finally 1.0847 (low Aug.5).

The common currency has surrendered its initial gains vs. the greenback, now dragging EUR/USD to test the 1.1020 region…

(Market News Provided by FXstreet)

By FXOpen