EUR/USD revisits daily lows as USD regains poise

The EUR/USD pair failed to sustain gains above 1.1050 levels and dropped sharply lower in early trades, now testing daily lows previously posted at 1.1034.

EUR/USD looking for a break below 1.1030?

Currently, EUR/USD now trades -0.08% lower at 1.1040, having faced strong offers near 1.1055 region.  The main currency pair’s minor-recovery lost steam during late-Asian and the prices retreated thereon, as the greenback regained its post-NFP upbeat momentum on the back of aggressive USD/JPY buying, following the news of additional stimulus announced by the Japanese PM Abe.

Further, the shared currency remains vulnerable to further downside as markets remain wary ahead of the Euro group meetings scheduled later today, with the ECB Chief Draghi and governing council member Coeure speeches eagerly awaited for fresh cues on any headline on Brexit as well as on the monetary policy.  

Next of relevance for the major remains the US labour market conditions index due later in the NA session as the EUR calendar remains absolutely data-empty. Besides, Fed official George’s speech will also remain in the spotlight, especially after Friday’s upbeat US jobs report.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1087/91 (200 & 10-DMA). A break beyond the last, doors will open for a test of 1.1144/50 (20-DMA/ psychological levels). On the flip side, the immediate support is placed at 1.1029/22 (Jul 6 & Jun 30 low) below which 1.1006/00 (Jun 26 low/ round figure) could be tested.