EUR/USD clears 1.1300 barrier, erase Tuesday's loss

As the US trading session got underway, the shared currency gained further traction, erasing all of its Tuesday's losses and lifting the EUR/USD pair back above 50-day SMA to currently trade comfortably above 1.1300 handle.

Demand for the single currency prevailed through Asian and European session as even a minor dip towards as bought into and the EUR/USD pair continued scaling new highs. Broadly weaker US Dollar and bullish sentiment surrounding Thursday's Brexit referendum is seen extending support to risk-on up-move in the EUR/USD pair.

Next in focus would be the release of US existing home sale data, which would be looked upon by US Dollar bulls for any near-term respite and would be accompanied by another testimony by the Fed Chair Jante Yellen. 

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "Short term, the pair presents a negative tone, as in the 4 hours chart, the price has been unable to advance beyond its moving averages that anyway remain in a tight range and lack clear directional strength, reflecting the ongoing range. In the same chart, however, the technical indicators maintain their bearish slopes within negative territory, favoring additional declines towards the 1.1220 region, a Fibonacci support. Seems unlikely the pair can break below this last but if it does, the decline can extend down to 1.1160."

"The immediate resistance is the 1.1290/1.1300 region, where selling interest has been steadily surging last week. It will take a firm advance beyond 1.1320, to confirm a recovery up to 1.1350, the next Fibonacci resistance and where sellers surged this Monday."