EUR/USD catches fresh bid in Asia, on its way to 200-DMA

The EUR/USD pair found fresh bids near the mid-point of 1.10 handle and now extends a minor-recovery towards 200-DMA at 1.1090 amid broad based USD retreat.

EUR/USD bounces from near 1.1050

Currently, EUR/USD now trades +0.10% higher at 1.1075, flirting with daily tops printed last minutes at 1.1079. The main currency pair extends its gradual recovery mode from 1.1050 region as the greenback’s overnight retreat gathered pace on the back of a minor correction after yesterday’s upbeat US ADP data-backed rally.

The US Private sector companies created 172,000 new jobs in June, only slightly down compared with a reading of 168,000 booked a month before. Markets had bet on additions of 158,000 new employees.

Moreover, the EUR/USD pair attempts to give back ECB monetary policy accounts induced losses, with the central bank having estimated in June that the recovery in Eurozone will be seen at a “moderate but steady pace,” though subject to “difficult to anticipate” risks from the UK’s vote to leave the European Union.

Looking ahead, focus remains on the much awaited US payrolls data due later in the NA session amid a data-light EUR trading calendar, with a set of second-tier economic releases on the cards.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1090/94 (200 & 5-DMA). A break beyond the last, doors will open for a test of 1.1129/50 (daily R1/ psychological levels). On the flip side, the immediate support is placed at 1.1029/22 (Jul 6 & Jun 30 low) below which 1.1006/00 (Jun 26 low/ round figure) could be tested.