EUR/USD: Supply capping minor-recovery near 5-DMA

The EUR/USD pair once again found support near 20-DMA and re-attempted gains, in a bid to take-out Wednesday’s high reached at 1.1238, although the recovery fizzled amid higher European equities.

EUR/USD back near 20-DMA at 1.1217

Currently, EUR/USD trades modestly flat at 1.1218, flirting with session lows reached at 1.12 striving hard to regain 5-DMA barrier located at 1.1230. The main currency once remains largely subdued amid a risk-friendly environment, as the European stocks join the global rally triggered by the OPEC output deal announcement.

Moreover, latest headlines crossing the wires indicate trouble brewing in the German lender Commerzbank, which comes a couple of days after the Deutsche bank debacle, also keep a check on the EUR.

Meanwhile, stalled recovery in the US dollar versus its major peers, after the bulls ran into 95.50 resistance, keeps the sentiment around EUR/USD somewhat buoyant. Also, slightly downbeat German employment data also acts as a drag on the EUR/USD pair.

Looking ahead, markets await a slew of economic releases from the Euroland, although the main focus remains on the German CPI figures ahead of US GDP data and Fed speaks due later in the day.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.1262 (Sept 28 high). A break beyond the last, doors will open for a test of 1.1286 (Sept 15 high) and from there to 1.1300 (round figure). On the flip side, the immediate support is placed at 1.1202 (hourly 200-SMA) below which 1.1145 (static support) and 1.1119 (Sept 21 low) could be tested.