EUR/USD wavers above 1.1200 in early Europe, Fed in spotlight

The EUR/USD pair once again finds support at 1.1190 levels and stages a minor-recovery thereon, now gathering pace for further upside as we head into early Europe.

EUR/USD: 1.1100 or 1.1300 on Fed?

Currently, EUR/USD trades almost unchanged at 1.1207, trying hard to extend above 1.1215 barrier. The main currency pair is seen consolidating the downside after a 100-pips fall witnessed yesterday as angst against Brexit intensified and sent the German bund yields crashing to the negative territory for the first time on record.

Moreover, the US dollar staged a solid comeback against its major competitors and hit fresh weekly highs, as reflected by the USD index that regained 95 handle. As for today, focus remains on the Fed decision, while a fresh batch of US data will be also watched for any impact on the major.

The Fed is widely anticipated to postpone further monetary tightening as a result of the disappointing May nonfarm payrolls figures.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1239/41 (5 & 100-DMA). A break beyond the last, doors will open for a test of 1.1297 (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.