EUR/USD: Upside capped near 1.1125 on EUR/GBP sell-off

A sudden-bid wave hit the EUR over the last hour, taking the EUR/USD pair further into the positive territory beyond 1.11 handle, as the US dollar remains heavily sold-off amid a risk-friendly environment.

EUR/USD extends higher to test 20-DMA at 1.1133

Currently, EUR/USD now trades +0.52% higher at 1.1116, hovering close to fresh five-day highs reached at 1.1126 post-European open. Having peaked near 20-DMA, the main currency pair maintains the bid tone, although recedes some gains, as fresh selling in the EUR/GBP cross capped further upside in the major. The EUR/GBP cross dives deeper in the red, solely on the back of increased demand for the pound on unwinding of shorts ahead of the BOE Governor Carney’s testimony. 

However, persistent broad based US dollar weakness will continue to support the bulls and keep the major better bid near weekly tops. The USD index slumps -0.50% to fresh 2-day lows just ahead of 96 handle.

Looking ahead, amid a lack of significant economic news from both continents, markets will closely track the EUR/GBP cross and USD index price-action for further momentum on EUR/USD.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1133/50 (20-DMA/ psychological levels). A break beyond the last, doors will open for a test of 1.1199/1.1200 (50-DMA/ round number). On the flip side, the immediate support is placed at 1.1093/87 (0 & 200-DMA) below which 1.1067 (5-DMA) could be tested.