EUR/USD: Rejected at 100-DMA, drops to 1.1165

Amid a lack of fresh fundamental drivers in the European session, the EUR/USD pair continues to closely follow USD-price action amid stabilizing equities and oil prices.

EUR/USD capped by 100-DMA at 1.1190

Currently, EUR/USD trades 0.16% higher at 1.1172, retreating slightly from fresh session lows struck at 1.1166 in the last hour. The bulls failed to take-out 100-DMA resistance and ran through fresh sellers thereon, sending EUR/USD lower towards 1.1150 levels.
The major eased-off highs as the US dollar recovered partial losses against its major rivals. The US dollar, gauged by the US dollar index now drops -0.16% to 95.25 versus -0.25% seen earlier.

Looking ahead, the EUR/USD pair is expected to remain under bearish pressure as the divergent central banks’ monetary policy outlooks continue to favour the greenback. While the upcoming US dataflow could also re-ignite the recent strength seen in the buck. Durable goods orders for April are forecast to rebound sharply, while, the usual jobless claims will be released later in the NY session. In addition, two voting FOMC members (Bullard and Powell) will hold speeches, which might bring volatility to the major.

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.