EUR/USD rises to 100-DMA as USD slides on profit-taking

The EUR/USD pair extends its rebound from multi-week troughs into early Europe, as the US dollar retreat against its major rivals heading into a fresh batch of US economic releases due later today.

EUR/USD: 100-DMA at 1.1191 witihn reach

Currently, EUR/USD trades 0.23% higher at 1.1180, having found solid support near hourly 20-SMA located at 1.1159. The main currency pair extends its recovery mode into a second day today, with bulls taking advantage of profit-taking slide seen in the greenback across the board after increasing Fed rate hike bets induced extensive rally seen earlier this week. The US dollar, gauged by the US dollar index now drops -0.25% to 95.16, extending its correction from 95.66, eight-month tops.

Markets look to take profits off the table ahead of significant economic releases from the US to be reported today and tomorrow, which includes durable goods, prelim GDP and consumer sentiment data.

Meanwhile, the major is likely to track the moves in the USD as well as the broader market sentiment for further momentum. While speeches from FOMC members Powell and Bullard will also remain in focus.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1200 (round number). A break beyond the last, doors will open for a test of 1.1220/50 (10-DMA/ psychological levels). On the flip side, the immediate support is placed at 1.1100 (200-DMA) below which at 1.1055 (Mar 16 Low) could be tested.