EUR/USD breaking lower towards 100-DMA

Having consolidated the overnight recovery almost through the Asian session, the EUR/USD is seen breaking slightly lower as we head into early Europe.

EUR/USD supported at 1.1250

Currently, EUR/USD trades +0.26 higher at 1.1254, retreating from daily highs posted at 1.1272 in early Asia.  The main currency pair is seen moving back and forth in a 20-pips narrow range over the past few hours, awaiting fresh impetus from the European open for next direction.

The EUR/USD pair regains lost ground and trades over 130 pips above yesterday’s dip to 1.1130 levels as the US dollar dives against its major peers after softer US core CPI figures and dovish Fed statement continue to weigh.

Looking ahead, the euro is likely to track the price-action in the German yields and also the sentiment on the European markets amid a lack of significant macro updates in the EUR calendar. While the US housing data and ECB Draghi’s speech will wrap up an eventful week.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1295/1.1300 (50-DMA/ post-FOMC high). A break beyond the last, doors will open for a test of 1.1350 (psychological levels). On the flip side, the immediate support is placed at 1.1241 (100-DMA) below which at 1.1188 (Jun 15 Low) could be tested.