EUR/USD retakes 1.10 and beyond

The greenback remains under heavy pressure early in the Old Continent, now helping EUR/USD to regain the psychological handle at 1.1000, fresh daily highs.

EUR/USD in 2-day peaks

Spot gathered further upside traction as market participants continue to unwind USD-long positions. In fact, USD remains on the defensive so far following swelling speculations over the potential size of the stimulus package by the BoJ likely to be announced at its meeting on Friday.

The pair is thus advancing for the second consecutive session, managing to extend the rebound from recent troughs in the mid-1.0900s.

Ahead in the session, USD-dynamics are poised to rule the sentiment amongst traders amidst empty docket in Euroland. Across the pond, the S&P/Case-Shiller index is due followed by flash Services PMI, New Home Sales and CB’s Consumer Confidence.

EUR/USD levels to watch

The pair is now gaining 0.19% at 1.1016 facing the initial hurdle at 1.1057 (20-day sma) followed by 1.1075 (200-day sma) and then 1.1166 (high Jul.14). On the flip side, a breakdown of 1.0913 (post-Brexit low Jun.24) would open the door to 1.0820 (low Mar.10) and finally 1.0777 (low Jan.21).