EUR/USD swings back above 1.1000 as USD buying stalls

A renewed selling interest gripped the USD dollar last minutes, allowing a tepid-recovery in the EUR/USD pair back onto 1.10 handle.

EUR/USD: Bounces-off 1.0980

Currently, EUR/USD now trades -0.16% lower at 1.1008, recovering quickly from fresh three-week lows struck at 1.0982 in the last hour. The main currency manages to regain 1.10 handle, despite re-emergence of risk-on sentiment, mainly driven by reduced demand for the greenback versus its major competitors. The USD index now rises +0.13% to 97.19 versus a +0.30% gain seen earlier on the day.

While markets appear to have ignored mixed economic releases from the Euroland, with the German PPI bettering expectations, while the Eurozone current account surplus narrowed in the month of May.

Markets look to reposition their trades and take profits off the table heading into the much-awaited ECB monetary policy decision due tomorrow.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1089/1.1100 (200-DMA/ round number). A break beyond the last, doors will open for a test of 1.1172 (50-DMA). On the flip side, the immediate support is placed at 1.0950/47 (psychological levels/ daily S2) below which 1.0909 (Jun lows) could be tested.