EUR/USD runs into 23.6% Fibo hurdle

Moderate US dollar selling in Asia pushed the EUR/USD pair higher to 1.1078, which is 23.6% Fibo retracement of the move from 1.1616 to 1.0911 (post Brexit low).

Trades higher for the second day

The pair is trading higher for the second day after having tested 1.10 handle on Friday. The pair failed to take out 1.1078 on Monday as the bid tone around the USD strengthened as stocks were poised to hit record highs.

The weakness in the USD in Asia today goes unexplained, although flat action in the treasury yields could have zapped demand for the USD. Later in the day, Fed speak could influence the pair. The final German CPI reading could go unnoticed unless there is upward/downward revision to the preliminary figure.

EUR/USD Technical Levels

Acceptance above 1.1078 (23.6% of 1.1616-1.0911) would open doors for 1.11 handle. A break higher could yield 1.1131 (June 16 low). On the other hand, a breakdown of support at 1.1052 (daily low) could push the pair down to 1.10. Further slide could run into support at 1.0911 (Brexit low).