EUR/USD looking to regain 1.0940 – key resistance

The recovery in EUR/USD from two-week lows of 1.0838 appears to have lost pace near 1.0935 region, with the bulls consolidating the recent US data backed upside.

EUR/USD: Will it break above 1.10 handle this week?

The US dollar continues to remain on the back foot against most of its main competitors, as sentiment remains weighed down by disappointing US retail sales and CPI data published last Friday. The USD index breaks lower and attacks 99 handle in early Europe.

Fed June rate hike odds drop to 73.8% on weak US data

Moreover, the euro also finds support from Merkel’s big win in the most populous state of North Rhine-Westphalia, which boosted hopes of a National win. Meanwhile, mixed market sentiment amid higher oil and negative equity markets also lend support to the funding currency EUR.

Focus now shifts towards the US economic releases, including Empire State manufacturing index and NAHB housing market index for fresh incentive, as the EUR calendar remains absolutely data-empty.

EUR/USD Technical Levels

Aayush Jindal at TitanFX notes, “looking at the 4-hours chart of EURUSD, the pair broke a major bullish trend line at 1.0910 during the downside move. The same trend line is currently acting as a resistance and preventing gains. At the moment, the pair is also struggling to break the 50% Fib retracement level of the last decline from the 1.1021 high to 1.0839 low. If the Euro buyers succeed in breaking the 1.0940 resistance, there is a chance of EURUSD trading towards 1.1000. On the downside, the 100 simple moving average (H4) at 1.0880 can be considered as a good support.”