FXStreet – Fresh bids emerged for the EUR/USD pair at 1.1075 levels and pushed the prices back towards 1.11 handle as the phase of consolidation to the upside extends into mid-Asia.
EUR/USD finds support at 1.1075
Currently, EUR/USD trades -0.10% lower at 1.1094, recovering from a brief dip to 1.1075 –fresh session lows hit in the last hour. The main currency pair eases-off fresh four-month tops, although tries hard to regain 1.11 handle as the minor recovery in the US dollar, after the recent slide, is seen losing steam. The US dollar index trades +0.05% at 97.33 versus +0.15% seen previously.
Moreover, a better risk sentiment prevails in Asia following a sharp rebound in major Asian indices as oil extends its ongoing recovery mode. Thus, the demand for the safe-haven euro diminishes as markets prefer risky assets in a bid to take the yield advantage.
Looking ahead, the greenback is expected to remain pressured amid dwindling Fed rate hike bets for March as the US economic recovery remains fragile in wake of the global turbulence. While markets now await the weekly jobless claims and factory orders from the US for fresh cues on the major.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance is seen at 1.1145/50 (Feb 3 High/ round number). A break beyond the last, doors will open for a test of 1.1192/1.1200 (daily R1/ psychological levels). On the flip side, the immediate support is placed at 1.1036/27 (1h 20-SMA/ 200-DMA) below which 1.0987/77 (Jan 15 & 20 High) could be tested.
(Market News Provided by FXstreet)