EUR/USD finds bids ahead of 1.1200, revisits daily highs

The common currency keeps the upper edge versus its American counterpart post-European open, with EUR/USD now swinging back towards daily highs.

EUR/USD: fresh bids emerge near hourly 20-SMA at 1.1205

Currently, EUR/USD trades +0.20% higher at 1.1225, heading for a retest of daily highs reached at 1.1228 in the last hour. The bulls were rescued by a broadly weaker US dollar from ahead of 1.12 barrier, and therefore, the main currency pair once again embarked upon the recovery mode towards 5-DMA located at 1.1253.

The shared currency also appears to have found fresh impetus from ECB’s Makuch comments, citing that, “it's not necessary to consider further easing at this point.” However, the recovery lacks momentum as the demand for the safe-haven euro remains soft amid rebounding European equities, as oil prices stabilize.

Calendar-wise, Eurozone's current account for March rose to +EUR27.3bln vs +EUR19.2bln previous. Meanwhile, German PPI for April ticked higher from 0.0% to 0.1% month-on-month, while the yearly print stayed at -3.1%. Next of note for the major remains the US existing home sales data and Fed speak due later in the American session.'

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1253 (5-DMA). A break beyond the last, doors will open for a test at 1.1271/1.1300 (1h 100-SMA/ round number). On the flip side, the immediate support is placed 1.118/75 (May 19 Low/ 100-DMA) below which at 1.1106 (200-DMA) could be tested.