Having failed several attempts to take on the recovery beyond 1.0925 levels, the EUR/USD pair is back on the offers and eyes a break below 1.09 handle.
The major came under renewed selling pressure, as the European equities traded firmer and collaborated to the improvement in the risk sentiment, which diminished the attractive of the Euro as a funding currency.
Moreover, a pick-up in buying interest seen around the US dollar against its major rivals, in the wake of rising US yields, also capped the recovery in the spot. The USD index rises +0.12% to 99.16, having found some support just ahead of 99 handle.
Next of note for the major remains the second-tier US economic releases, including the JOLTS job openings data, which will be report in the NA session. Apart from the macro news, there a few speeches by FOMC members including Rosengren (non-voter, hawkish) and Kaplan (voter, dovish).
EUR/USD Technical Levels
Karen Jones, Analyst at Commerzbank explained, “EUR/USD’s near term outlook is more negative: Euro charted a key day reversal yesterday and the new high of 1.1040 was accompanied by a divergence of the daily RSI. We would allow for a dip lower, however in order to negative upside pressure a close back below the 200 day ma at 1.0830 is required. Please note that key day reversals are often indicators of the end of a move. While above the 200 day ma, we remain unable to rule out upside scope to the January 2015 low at 1.1098 and the 1.1146 78.6% retracement.”