Having found some support near 1.1175 region, the EUR/USD pair has embarked upon a minor-recovery mode, as the bulls look to regain 1.12 handle ahead of key central bankers’ speeches.
EUR/USD: Recovery appears limited on policy divergence
The spot is seen consolidating the Asian recovery as we progress towards the European morning bells, although remains in the upper bound of today’s trading range. The greenback retraces late-Monday’s rebound against most of its major peers, as the bulls turn defensive ahead of the crucial US consumer confidence data and Fed Chair Yellen’s speech.
Despite the upbeat tone seen around the EUR/USD pair, investors remain wary whether the spot would extend the recovery above 1.12 handle, as monetary policy divergence between the ECB and Fed remains on top of the mind ahead of the speeches by the ECB President Draghi and Fed Chief Yellen.
Meanwhile, the EUR/USD pair maintains the bid tone as solid German IFO surveys continue to underpin the Euro, while downbeat US durable goods data add to the negative bias seen around the buck.
EUR/USD Technical Levels
According to Valeria Bednarik, Chief Analyst at FXStreet: “Technically, the pair has faltered once again around 1.1210/20, having been rejected from the area multiple times since June 14th. To the downside, a major Fibonacci support stands around 1.1120 while a relevant low comes at 1.1109, the price to break lower to confirm further slides ahead.”