EUR/USD finds buyers again near 1.1720, risk-off supports

The EUR/USD pair is making attempts to take on the recovery towards 1.1750, as persisting risk-off sentiment continues to overshadow underlying strength seen in the US dollar across the board.

EUR/USD risks remain to the downside ahead of US inflation?

Fresh bids emerged once again near 1.1720 - a key confluence zone of 20-DMA and weekly lows, allowing a tepid bounce in EUR/USD, as we progress towards the European opening bells.

The spot is now looking to regain the bids, as markets resort to the Euro, which is usually considered a safe-haven in times of geopolitical tensions and uncertainty.  The latest round of North Korean tensions over the missile threat escalated after Trump said that North Korea "will be met with fire, fury and frankly, power, the likes of which this world has never seen before."

However, the USD bulls continue to cheer stronger-than expected US JOLTS job openings data, which could cap the renewed upside in the EUR/USD pair, as markets would take cues from the USD dynamics amid a lack of significant economic drivers from the Euroland.

EUR/USD Technical Set-up  

Jim Langlands at FX Charts explains: “Selling rallies towards 1.1800 would seem to be the plan, with a SL placed above the session high of 1.1823. If we do head above higher, points of resistance would be seen at minor Fibo levels, ahead of the 4 Aug high of 1.1882 and the trend high at 1.1909. Back above 1.0910, there is very little resistance to stand in the way of a move towards 1.2000, with the next Fibo level is not actually seen until 1.2165 (50% of 1.3993/1.0340) although this seems the less likely direction in the next day or two.”