EUR/USD dips to 1.1340 but bullish bias remains

The EUR/USD pair was seen trading sluggish around 1.1340 area during Asian session on Monday, dipping lower in sympathy with a sharp fall in the GBP/USD major.

Last week, the pair reversed from 2-1/2 month low levels and moved sharply higher on Friday after disappointing headline NFP and weaker-than-expected US ISM non-manufacturing PMI numbers. The pair surged past 1.1300 handle with ease and jumped to a 3-week high level of 1.1374.

On Monday, traders would take cues from German factory orders data for the month of April but the key focus would remain on the Fed Chair Yellen's speech later during NY session. Despite of the looming 'Brexit' concerns and weaker employment report for May, Janet Yellen is expected to maintain its hawkish oulook and keep doors open for a near-term Fed rate-hike move.

Technical outlook

Mohammed Isah, Technical Strategist FXTechstrategy notes, "Support lies at the 1.1300 level. Further down, support comes in at the 1.1250 level where a violation will aim at the 1.1200 level. A break of here will target the 1.1150 level. Conversely, on the upside, resistance comes in at 1.1400 level with a cut through here opening the door for more upside towards the 1.1450 level. Further up, resistance lies at the 1.1500 level where a break will expose the 1.1550 level. Its weekly RSI is bullish and pointing higher suggesting further strength. All in all, EURUSD remains biased to the upside on more strength."