EUR/USD tests Wednesday’s high and retreats, German data eyed

EUR/USD extends its upbeat momentum into the early European trading, having bounced-off a strong support near 20-DMA in early Asia.

EUR/USD around 5-DMA at 1.1231

Currently, EUR/USD trades +0.12% higher at 1.1230, retreating from session highs posted at 1.1236, just a thread-line short of Wednesday’s high reached at 1.1238. The main currency once again found fresh bids near 1.1185 region and embarked upon a solid recovery path, despite a better risk tone prevalent across the markets in wake of OPEC’s output cut agreement.

Moreover, a phase of downside consolidation in the greenback against its major peers also added to the bullish momentum in EUR/USD. The US dollar fell across the board in the last American session, as the bulls were left unimpressed by a string of Fed speaks, including Yellen’s testimony. While markets digested ECB Chief Draghi’s remarks at his speech before the German parliament.

Later today, the major will get influenced by the German employment and CPI data ahead of the US GDP report and Fed speaks scheduled in the NA session.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.1262 (Sept 28 high). A break beyond the last, doors will open for a test of 1.1286 (Sept 15 high) and from there to 1.1300 (round figure). On the flip side, the immediate support is placed at 1.1202 (hourly 200-SMA) below which 1.1145 (static support) and 1.1119 (Sept 21 low) could be tested.