EUR/USD deflates from 1.1275 ahead of Sentix

The offered tone behind the US dollar weakened a bit across the board in early Europe, prompting a minor-retreat in the EUR/USD pair from daily tops of 1.1275.

EUR/USD down to test 5-DMA/ daily pivot confluence at 1.1258

The spot is seen defending the bids, as the USD bulls look to regain footing amid a minor-recovery staged by the US yields across the curve, while the EUR/GBP cross remains largely subdued, having limited impact on the main currency pair so far this session.

The greenback extended weakness across the board on Monday, after the benchmark 10-year treasury yields dropped below 200-DMA on Friday. Focus now shifts towards the economic releases due later in the European session, with retail PMI, Sentix investor confidence and retail sales data on tap, while the US docket has JOLTS job openings and IBD/TIPP economic optimism lined up for release.

However, the main risk events for the major this week remains the ECB policy decision and UK election, which will set the direction for the coming days.

EUR/USD Technical Levels

Valeria Bednarik, Chief Analyst at FXStreet notes: “The risk remains towards the upside, with a break beyond 1.1300 still required to confirm a new leg higher, while a break below 1.1180 will probably see a downward corrective extension down to the 1.1120 region. Support levels: 1.1220 1.1180 1.1125 Resistance levels1.1300 1.1345 1.1390.”