EUR/USD: Offered tone weakens around 10-DMA, recovers to 1.12

By FXStreet The selling interest in the EUR/USD pair stalled around 10-DMA located at 1.1192, making way for a minor recovery to 1.12 levels.

Stays below hourly 200-MA

The recovery from the intraday low of 1.1187 failed to take out the hourly 200-MA located at 1.1210 levels. The corrective rally in the stock markets in Asia and Europe weighed over the common currency earlier today and continue to cap the recovery off lows around 1.12 handle.

President Draghi’s introductory statement at the European Parliament due later in the European afternoon could offer some trading cues. Thin volumes could be seen ahead in the day on account of the trading holiday in the US.

EUR/USD Technical Levels

The immediate hurdle at 1.1236 (38.2% of Mar low-Aug high), above which the pair could target 1.1275 (hourly 100-MA). That would be followed by a psychological resistance at 1.13 levels. On the other side, a breakdown of 1.1187 (daily low) could see the spot test hourly chart support at 1.1160, under which the drop could be extended to 1.1088 (50% of Mar low-Aug high).
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Source:: FX Street