EUR/USD off-lows, regains 1.1050 and beyond

Having found fresh bids near 1.1040 region, the EUR/USD pair embarks upon a minor-recovery back above the mid-point of 1.10 handle, in a bid to reclaim 200-DMA located at 1.1087.

EUR/USD hovers around 5-DMA at 1.1054

Currently, EUR/USD now trades almost unchanged at 1.1058, recovery from session lows struck at 1.1042 on European open.  The main currency pair caught a fresh bid tone over the last hour as mixed sentiment on the European equities provided fresh impetus to the funding currency EUR. The German DAX 30 index trades -0.18%, the UK’s FTSE trades modestly flat, while the pan-European benchmark, the Euro Stoxx 50 drops -0.21%.

Moreover, a recovery in the EUR/GBP cross also lends support to the bounce in the major, as increased BOE rate cut hope for tomorrow keeps the pound under pressure. Meanwhile, the major saw limited reaction to the Chinese data, as focus now remains on the Euro zone industrial production data due out shortly.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1080/87 (10 & 200-DMA). A break beyond the last, doors will open for a test of 1.1117/50 (20-DMA/ psychological levels). On the flip side, the immediate support is placed at 1.1029/22 (Jul 6 & Jun 30 low) below which 1.1006/00 (Jun 26 low/ round figure) could be tested.