EUR/USD attempts recovery towards 1.1150 ahead of ZEW

Fresh bids emerged at 1.1120 levels post-China open, allowing a minor-recovery in EUR/USD back towards the mid-point of 1.11 handle as we head into early Europe.

EUR/USD losing sight of 100-DMA

Currently, EUR/USD recovers losses to trade flat around 1.1135 levels, now eyeing a break above 1.1150 barrier. The bulls are seen fighting back control amid stalled USD buying, prompting a tepid-bounce in the EUR/USD pair from 1.1120, session lows. The US dollar eased across the board, as traders weigh outrightly dovish comments from Fed member Evans.

Moreover, renewed weakness in oil prices leads to a slight deterioration in the risk sentiment, which also lends support to the funding currency euro against its American rival. All eyes now remain on the German ZEW surveys and US LMCI data due for release later today.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.1162/67 (5 & 100-DMA). A break beyond the last, doors will open for a test of 1.1200 (20-DMA) and from there to 1.1231/50 (daily R2/ psychological level). On the flip side, the immediate support is placed at 1.1101 (multi-week lows) below which 1.1081 (daily S2) and 1.1043 (Aug 5 low) could be tested.