EUR/USD – Rejected near 1.12, turns negative

EUR/USD failed to take out previous day’s high of 1.1191 and turned marginally negative on the day to trade around 1.1172 levels.

Offered above 38.2% Fibo

The drop from 1.1191 to 1.1172 marks the second failure to sustain above 1.1181 (38.2% of 1.1616-1.0911). Broad based USD selling seen yesterday pushed the pair to a high of 1.1191 before dollar made a modest recovery, which led to day end closing at 1.1175.

Another attempt at 1.12 failed in Asia. The spot remains at the mercy of the overall demand for the US dollars. Later in the day, US weekly initial jobless claims figure could influence the pair.

EUR/USD Technical Levels

Breach of immediate support at 1.1150 (50-DMA) would open doors for a drop to 1.1126 (5-DMA). A violation there could yield 1.1080 (200-DMA). On the other hand, a cut above resistance at 1.12 would expose 1.1236 (38.2% of 1.0463-1.1714). Further gains could run into wall of resistance around 1.13 (psychological resistance).