EUR/USD testing highs near 100-DMA

The selling spiral seen behind the EUR/USD pair once gain lost steam near 1.1270 region, now pushing the spot towards 100-DMA located at 1.1299.

EUR/USD shrugs-off higher European stocks

Currently, EUR/USD trades -0.30% lower at 1.1290, hovering within a striking distance of session highs reached at 1.1294 last hour. The USD bulls took a breather from the renewed upsurge, and hence, helped EUR/USD recovers some losses. The USD index now trades +0.32% higher at 94.78, easing-off daily highs scored at 94.94.

The retreat in the US dollar across the board is backed by the stalled rally in US treasury yields, with the 2-year yield consolidating at pre-Brexit level. Hence, the euro is seen making most of the USD retreat and now re-attempts 1.1300 levels, ignoring the positive performance on the European indices.

Attention turns towards the Eurozone flash manufacturing PMIs and US housing data lined up for release tomorrow, in absence of economic data releases on Monday.

EUR/USD Technical Levels               

In terms of technicals, the pair finds the immediate resistance 1.1300/11 (100 & 20-DMA). A break beyond the last, doors will open for a test of 1.1367 (post-Brexit high). On the flip side, the immediate support is placed at 1.1250 (daily S3) below which 1.1229 (200-DMA) could be tested.