EUR/USD finds support at 1.1220 and trims losses

By FXStreet FXStreet (Córdoba) – EUR/USD found support at the 1.1220 zone and even managed to recover some ground over the last hours against a backdrop of uncertainty and erratic moves as investors focus turns to ECB meeting on Thursday and the nonfarm payrolls report on Friday.

EUR/USD dropped nearly a full cent throughout the day despite the latest series of US data came in on the soft side, and touched a low of 1.1221 before bouncing slightly. At time of writing, the pair is trading at 1.1242, recording a 0.64% loss on the day.

The Fed’s Beige Book will be published at 18:00 GMT and even though usually it has low market impact, investors will likely be interested on the bank’s assessment of the economy to see if a September liftoff is still possible.

EUR/USD levels to watch

In terms of technical levels, EUR/USD could find immediate supports at 1.1222 (Sep 2 low), 1.1200 (psychological level) and 1.1178 (21-day SMA). On the other hand, resistances are seen at 1.1292 (200-day SMA), 1.1318 (Sep 2 high) and 1.1331 (Sep 1 high).
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Source:: FX Street