EUR/USD revisits daily lows ahead of Fed’s Brainard

The shared currency failed to hold at higher levels against its American counterpart post-European open, sending EUR/USD back below the mid-point of 1.12 handle.

EUR/USD back around 5-DMA at 1.1243

Currently, EUR/USD trades modestly flat at 1.1238, retreating sharply from session tops reached at 1.1263 at Europe open. The main currency pair moved-off highs and erases most gains amid stalled USD selling, as the treasury yields continue to head higher ahead of the speech from the Fed Governor Lael Brainard due later in the NA session.

However, the bulls manage to find some support from the persistent risk-off market profile, triggered by a sell-off in the European equities as well as across the commodities’ space. Germany’s DAX drops -1.92%, the UK’s FTSE tanks -1.60% and the pan-European benchmark the Eurostoxx 50 declines -2% so far this session.

EUR/USD Technical Levels               

In terms of technicals, the pair finds the immediate resistance 1.1300 (round number). A break beyond the last, doors will open for a test of 1.1343 (Aug 28 high). On the flip side, the immediate support is placed at 1.1224/13 (20 & 10-DMA) below which 1.1175/72 (200& 100-DMA) could be tested.