EUR/USD manages to hold 200-DMA support, German CPI eyed

Having dropped sharply to fresh multi-week troughs earlier this session, the EUR/USD pair is seen extending its downside consolidation phase into early European trading amid broad based US dollar strength.

EUR/USD: bounces-off 200-DMA

Currently, EUR/USD trades -0.07% lower at 1.1105, having struck fresh eleven-week lows 1.1098, where 200-DMA intersects. The main currency pair found renewed bids at 200-DMA and climbed back above 1.11 handle amid a relatively calm Asian session, with the bears now taking a breather before the next leg lower.

Further, persistent strength in the greenback against its major competitors in response to hawkish comments from Fed Chair Yellen bolstered the case for June/July Fed rate hikes and drove the US dollar index to the highest levels since March-end. Meanwhile, the US dollar index, which gauges greenback’s strength against its six major peers, trades +0.19% at 95.91.

Next in focus for the major remains the German CPI figures lined up for release today, while the US markets stay closed on account of Memorial Day holiday. In the week ahead, the main risk events for EUR/USD are likely to be the ECB decision on Thursday and the US payrolls data due out on Friday.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance at 1.1136/62 (5-DMA/ 1h 100-SMA). A break beyond the last, doors will open for a test of 1.1200 (round number). On the flip side, the immediate support is placed at 1.1098 (200-DMA) below which at 1.1055 (Mar 16 Low) could be tested.