The EUR/USD pair is back above 1.10 handle, but the bullish momentum appears weak despite signs of risk-off in the major US index futures.

Hovers around 1.1020

The spot currently sits around 1.1020 levels as buying interest in the USD ran out of steam around 1.10 handle. The pair appears on track to re-test 200-DMA of 1.1045; a level where the pair was offered earlier today.

Moreover, the pair has been rejected at 200-DMA on five occasions in last two weeks. The data calendar is in the US is light; hence, the spot remains at the mercy of equity market sentiment. Given the risk-off in the equities, the spot could make another attempt at 200-DMA.

EUR/USD Technical Levels

The immediate hurdle is seen at 1.1045 + 1.1048 (200-DMA + 38.2% of 1.0517-1.1376), ahead of the resistance at 1.1087 (Sep 3 low) and 1.11 (psychological number). On the other hand, a break below 1.10 (psychological figure + daily low) would expose 50-DMA 1.0978, under which losses could be extended to 1.0922 (100-DMA).

The EUR/USD pair is back above 1.10 handle, but the bullish momentum appears weak despite signs of risk-off in the major US index futures.

(Market News Provided by FXstreet)

By FXOpen