EUR/USD hovers just above weekly 100-MA

EUR/USD is working hard to hold above weekly 100-MA level of 1.1222 after having failed to close above the same last week for the third straight week.

Trades in a multi-week range

The spot finds itself stuck in a multi-week range of 1.1360 to 1.1120 levels. The odds of a breakout were high last week, given we had FOMC rate decision. However, the data dependent stance of Fed did little to help US dollar.

Meanwhile, renewed concerns in Eurozone, especially regarding the banking sector restricted the gains in the common currency.

Draghi’s testimony later today and Fed peak could influence the pair. Keep an eye on Deutsche bank news flow as the speculation is on the rise that the German lender would require a bailout.

EUR/USD Technical Levels

The spot was last seen trading around 1.1230. Failure to hold above weekly 100-MA level of 1.1222 could yield a drop to 1.1190 (weekly 10-MA), under which the losses could be extended to 1.1123 (last week’s low). On the higher side, 1.1257 (Sep 22 high) could offer support, which if breached would expose 1.13 (zero figure) and 1.1341 (Aug 26 high)