EUR/USD meets fresh supply, slips back to 50-DMA

The EUR/USD pair stalled a brief recovery just ahead of the mid-point of 1.11 handle, and now turns back towards 50-DMA support placed near 1.1135 region in the early European trading.

EUR/USD at four-day lows

Currently, EUR/USD trades modestly flat at 1.1144, retreating from session highs previously posted at 1.1156. The main currency pair consolidates the downside on 1.11 handle, after having witnessed a sharp sell-off in the US last session in response a solid recovery staged by the greenback across the board. The US dollar regained lost footing against its six major peers after both the US ADP employment numbers and Markit services PMI report bettered expectations.

In the day ahead, the EUR/USD pair risks further downside as the greenback may remain bid heading into the BOE interest rate decision. The European currency may also suffer on the back of the rub-off effect, should the BOE roll out aggressive easing measures in wake of the Brexit vote.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1200 (round figure). A break beyond the last, doors will open for a test of 1.1222 (100-DMA). On the flip side, the immediate support is placed at 1.1114/09 (10 & 200-DMA) below which 1.1077 (daily S2) could be tested.