EUR/USD manages to hold above hourly 200-SMA

EUR/USD’s overnight retreat from near 5-DMA lost pace at hourly 200-DMA located at 1.1202, with the major managing to sustain above the last amid broad based US dollar strength.

EUR/USD faces stiff resistance at 5-DMA

Currently, EUR/USD trades -0.07% lower at 1.1209, unable to take on the recovery above 1.1215 region. The main currency keeps losses and meanders near daily lows as persisting risk-off markets profile fails to underpin the funding currency euro.

While ongoing strength seen in the US dollar against its major peers, following the first US election debate and upbeat US fundamentals, also continues to exert downside pressure on the major.

However, the downside remains supported on the back of higher EUR/GBP cross as the UK month-end subsidy payment to EU weighs down on the pound.

Focus now remains on the central banks’ speeches from both continents, with Fed Yellen’s testimony to follow ECB Draghi’s speech before the German parliament. On the data front, the US durable goods data is lined up for release ahead of the US open.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.1262 (Sept 28 high). A break beyond the last, doors will open for a test of 1.1286 (Sept 15 high) and from there to 1.1300 (round figure). On the flip side, the immediate support is placed at 1.1202 (hourly 200-SMA) below which 1.1145 (static support) and 1.1119 (Sept 21 low) could be tested.