EUR/USD turns negative below 1.1140, awaits German data

EUR/USD’s recovery attempt from 200-DMA lost legs just ahead of the mid-point of 1.11 handle, and from there the prices drift lower amid risk-on rally in the Asian equities and minor pullback in the US dollar across the board.

EUR/USD drops below 5-DMA at 1.1141

Currently, EUR/USD trades -0.06% lower at fresh session lows of 1.1132, notwithstanding 1.1150 levels. The main currency pair came under fresh selling pressure as we head into the early European trades, largely on the back of a minor rebound staged by the greenback against its major counterparts, with the USD index now looking to resume the broader uptrend ahead of a string of US macro updates, including Fed’s favourite inflation gauge.

Moreover, the risk-on rally seen in the Asian indices also added to the downward pressure on the safe-haven currency EUR, while the major remains unperturbed by the expectations of a better EU flash CPI print.

Next in immediate focus for the major remains the German retail sales and employment data due out shortly, while the US dataflow will be also closely eyed ahead of the crucial labour market report due to be published in the latter part of this week.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance at 1.1154/55 (1h 100-SMA/ daily high). A break beyond the last, doors will open for a test of 1.1200 (round number). On the flip side, the immediate support is placed at 1.1098 (200-DMA) below which at 1.1055 (Mar 16 Low) could be tested.