EUR/USD refreshes session lows amid resurgent USD demand

   •  USD catches fresh bids as equity selloff continues.
   •  Technical selling adds to the downward pressure.

The USD buying interest seems to have picked up in the past hour, with the EUR/USD pair refreshing session low and dropping to mid-1.2300s.

The pair faded an early European session bullish spike to the 1.2435 region and has now retreated around 75-pips from session tops amid resurgent US Dollar demand. 

The ongoing slump in global equity markets, along with an unprecedented upsurge in the Volatility Index was seen driving investors towards perceived safe-assets/currencies, including the greenback. 

Meanwhile, the market now seems to have digested today's upbeat German factory orders data, with reviving USD demand turning out to be an exclusive driver of the pair's volatile price action on Tuesday. 

From a technical perspective, the pair is retreating from a short-term ascending trend-line support break-point, now turned resistance, and reinforced previous session's bearish break. Hence, a follow-through weakness, primarily led by some technical selling, now looks a distinct possibility.

Technical levels to watch

Immediate support is pegged near 1.2325-20 area, which if broken is likely to accelerate the fall even below the 1.2300 handle towards its next support near the 1.2260 region. 

On the upside, the 1.2390-1.2400 region now becomes an immediate strong resistance, above which the pair could make a fresh attempt towards retesting the 1.2445-50 supply zone.