EUR/USD extends profit-taking rally to 1.1075

The bid tone around the EUR keeps growing bigger as we head into the European session, driving the EUR/USD rally further towards 1.1100 levels.

EUR/USD awaits EU Summit for fresh impetus

Currently, EUR/USD now rises +0.36% to 1.1065, retreating slightly from fresh daily highs reached at 1.1075 last minutes. The main currency pair continues to find support from persistent weakness in the greenback across the board, with the USD index now dropping -0.36% to 96.19.

A renewed bout of buying interest seen in the EUR/USD can be mainly attributed to a profit-taking rally, as investors took profits off the table after the recent Brexit-induced sharp declines.

Next in focus remains the EU Economic Summit, with a bunch of ECB officials expected to deliver speeches, while data-wise, the US final GDP figures, consumer confidence and S&P/CS Composite-20 HPI y/y will be closely eyed for fresh incentives on the greenback.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1083 (Monday’s high). A break beyond the last, doors will open for a test of 1.1102 (200-DMA). On the flip side, the immediate support is placed at 1.0971 (Jun 26 low) below which at 1.0913 (Brexit low) could be tested.