EUR/USD erodes gains to 1.1170

After a brief test of the 1.1190 area, the upside in EUR/USD has lost momentum and is now hovering over the 1.1170 region.

EUR/USD propped up by risk-on trade

The recovery of crude oil prices have been sustaining the return of the risk appetite sentiment to the global markets, prompting spot to rebound from 3-month lows in the 1.1130 area posted yesterday, although gains appear somewhat capped around 1.1190 for the time being.

The softer tone in the greenback is also collaborating with the intraday upside, although its extent will likely be put to the test later, in light of the releases of US Durable Goods Orders, Initial Claims and Pending Home Sales, all ahead of speeches by FOMC’s Bullard and Powell.

EUR/USD levels to watch

The pair is now advancing 0.14% at 1.1170 and a break above 1.1246 (high May 23) would aim for 1.1303 (55-day sma) and finally 1.1331 (20-day sma). On the other hand, the immediate support lines up at 1.1129 (low May 24) followed by 1.1103 (200-day sma) and then 1.1055 (low Mar.16).