EUR/USD drops back to 1.1260 amid cross-driven weakness

The EUR/USD pair is seem reversing a brief spike to 1.1280 levels, as the Euro takes a hit on renewed cross-driven weakness.

EUR/USD looks to test 5-DMA support at 1.1255

As discussed earlier, EUR/GBP price-action remains a key driver for the spot, with fresh selling seen in the cross weighing down on the core pair – EUR/USD, in the wake of fresh bid-tone seen around GBP, following the release of the latest ICM UK election poll.  The UK ICM election poll showed Conservatives with an 11 percentage point lead versus Labour, standing at 45% vs. 34%.

Meanwhile, the US dollar remains stuck in a narrow range against most of its major peers, offering little impetus to the major. Also, markets shrugged-off upbeat Eurozone and German final services PMI and reverted to daily lows near 1.1260 levels, as broader market sentiment continue to dominate amid a lack of fresh first tier economic releases, as most major European markets are closed on account of Whit Monday.  

Next of relevance for the major remains the ISM services PMI, factory orders and LMCI data, which are slated for release in the NA session.

EUR/USD Technical Levels

Valeria Bednarik, Chief Analyst at FXStreet notes: “The 4 hours chart for the pair shows that the positive tone persists, despite the absence of momentum, this last due to low volume. The price however, develops well above all of its moving averages, with the 20 SMA providing an immediate intraday support at 1.1245, and technical indicators having turned flat within positive territory. Below the mentioned level, 1.1200 is the next support, followed by 1.1160.”

“Above 1.1300 on the other hand, the pair will likely accelerate its advance, and rally up to 1.1345 initially, while beyond this last, the 1.1380/90 region comes next,” Valeria adds.