EUR/USD: Bulls rescued by upbeat Sentix, regains 1.1250

The shared currency is seen making minor-recovery attempts amid persisting risk-off trades and better Eurozone Sentix data, driving EUR/USD back above the mid-point of 1.12 handle.

EUR/USD re-takes 5-DMA/ daily pivot confluence at 1.1258

The spot failed to sustain at higher levels and fell sharply lower post-European open, as the US dollar staged a solid comeback versus its main peers, lifting the USD index from seven-month troughs of 96.49 levels.

The greenback’s recovery picked-up pace across the board, despite renewed weakness in treasury yields. However, the retreat in EUR/USD stalls, as the bulls are rescued by better-than expected Eurozone Sentix investor confidence data released last minutes.

Moreover, negative performance seen on the European equities combined with weaker oil and copper prices, continue to dent market sentiment, thereby lending some support to the funding currency Euro.

The immediate focus now remains on the Eurozone retail sales data due out shortly, especially after the retail PMI came in downbeat. Also, of note for the major remains the US  datasets due later in the NA session.

EUR/USD Technical Levels

Jim Langlands at FX Charts noted: “ A break of 1.1285 could yet take the Euro on to  1.1300, a break of which could elicit a quick move higher, to where the points to watch are at 1.1365 (18 Aug high), 1.1427 (24 June high) and then at 1.1450 (major descending trend resistance).”

“Back under 1.1200, would then allow for another test of 1.1160 and potentially of 1.1100/10, and further out, 1.1075 and 1.1040 are likely targets albeit that they are still some way off,” Jim added.