By Dhwani Mehta
Risk-on sentiment returns in the European session amid recovery in the oil prices, sending EUR/USD lower from session tops, despite renewed selling seen in the greenback across the board.
EUR/USD awaits Fed
Currently, EUR/USD trades +0.06% higher at 1.1214, deflating from 1.1229 session highs. The bullish grip on the EUR appears to loosen last hour, capping the recovering in EUR/USD near 1.1230 region as a better risk environment persists in Europe in response to the relief rally in the European equities.
However, the major finds support from the retreat in the US dollar against its major peers, as markets take profits off the table after yesterday’s rebound, heading into the Fed decision due tomorrow. Meanwhile, the USD index drops -0.07% to 94.95 levels.
Next of note for the major remains the US economic dataflow, while the Fed verdict is expected to have significant impact on the EUR/USD pair.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance 1.1241 (5 & 100-DMA). A break beyond the last, doors will open for a test of 1.1298 (50 & 10-DMA). On the flip side, the immediate support is placed at 1.1134 (Jun 3 Low) below which at 1.1100 (200-DMA) could be tested.
News Source: http://www.fxstreet.com/