EUR/USD languishes near 10-week lows, 200-DMA on sight

The EUR/USD pair extends its side-trend into the European session, now receding gains and heads for a retest of multi-week low amid risk-on rally seen in the European stocks.

EUR/USD: 200-DMA eyed to the downside

Currently, EUR/USD trades almost unchanged at 1.1142, unable to break through daily highs reached at 1.1158. The main currency pair is oscillating back and forth in a 20-pips slim range, although risk remains to the downside as hawkish Fedspeaks suggesting early Fed rate hikes and European stocks rally pose double whammy to EUR/USD.

However, the downside remains capped as the bulls find some support from upbeat German Ifo surveys, with Ifo report revealing 107.7 points for the Business Climate Index in May after 106.6 before, while markets had predicted 106.8 reading.

Next in focus remains the US goods trade balance and flash services PMI due later in the NA session alongside speeches from Fed officials Harker, Kashkari and Kaplan.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1187/90/1.1200 (100 & 5-DMA/ round number). A break beyond the last, doors will open for a test of 1.1232/50 (10-DMA/ psychological levels). On the flip side, the immediate support is placed at 1.1101 (200-DMA) below which at 1.1055 (Mar 16 Low) could be tested.