EUR/USD rejected near 5-DMA, drops to 1.1070

EUR/USD is trading quite choppy so far this session, with the bears struggling hard to extend control amid a broadly firmer US dollar.

EUR/USD manages to regain 20-DMA at 1.1077

Currently, EUR/USD trades modestly flat at 1.1080, recovering slightly from a dip to session lows struck at 1.1071 in the last hour. The main currency pair moves back and forth in a tight 20-pips range, having failed to sustain the post-NFP recovery above 1.11 handle. Meanwhile, the USD index trades +0.10% higher at 96.40 levels, near weekly highs posted at 96.50 last Friday.

The EUR/USD pair came under mild selling pressure in Asia as markets digest mixed Chinese CPI and PPI releases, while the US dollar holds the favourite spot amidst divergent monetary policy outlooks between the Fed and ECB, especially after Friday’s upbeat US jobs report.

Data-wise, in absence of relevant macro news from the Euroland, markets await the US economic releases due later in the NA session for fresh impetus on the major.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1095/1.1100 (5-DMA/ round number). A break beyond the last, doors will open for a test of 1.1135/50 (10-DMA/ psychological levels). On the flip side, the immediate support is placed at 1.1053/46 (daily S2/ post-NFP low) below which 1.1000 (key support) could be tested.