EUR/USD flirting with lows near 5-DMA

EUR/USD is seen consolidating the Asian retreat and now wavers near 5-DMA (1.0963), as sentiment remains favorable towards the greenback amid recovery in risk conditions.

EUR/USD tracks USD price-action

Currently, EUR/USD trades -0.12% lower at 1.0967, hovering within a striking distance of daily lows struck at 1.0961 in the last hour. The main currency pair failed another attempt towards 1.10 handle and dropped sharply in the Asian trades, as the US dollar staged a solid recovery against its main competitors on increasing speculations over a Clinton win at the US presidential elections due next week.

Further, amid a lack of fresh fundamentals and thin liquidity from the Euroland, the major is likely to remain at the mercy of the USD dynamics ahead of both the US ISM and Markit manufacturing PMIs due to be reported in the NA session.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0991 (Oct 31 high). A break beyond the last, doors will open for a test of 1.1050 (psychological levels) and from there to 1.1100 (key resistance). On the flip side, the immediate support is placed at 1.0926 (10-DMA) below which 1.0900 (round figure) and 1.0886 (daily S3) could be tested.