EUR/USD Stuck in Tight Range Near 1.1200
The EUR/USD
pair traded around a flat-line almost through the Asian session, and
now flirts with 1.12 handle as we head towards early Europe.
EUR/USD finds support above 100-DMA at 1.1175
Currently, EUR/USD trades dead flat at 1.1202, easing-off session highs
reached at 1.1210 earlier in Asia. The main currency pair consolidates
the downside over the past few hours and hovers in a 15-pips narrow
range as markets await fresh impetus for the next leg lower.
The risk remains to the downside for the euro-dollar pair as the US
dollar remains in demand amid June Fed rate hike chatter, which brings
monetary policy divergence between both continents back in the
spotlight.
Meanwhile, markets await fresh cues from the G7 meeting as also from the
sentiment on the global equities to gauge further moves in EUR/USD. On
the data front, the EUR calendar remains data-dry, while the US docket
offers housing data alongside Fed speak.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance at
1.1230/51 (1h 50-SMA/ 5-DMA). A break beyond the last, doors will open
for a test at 1.1275/1.1300 (1h 100-SMA/ round number). On the flip
side, the immediate support is placed 1.118/75 (May 19 Low/ 100-DMA)
below which at 1.1106 (200-DMA) could be tested.
