EUR/USD regains 100-DMA and beyond as USD resumes decline

The EUR/USD pair appears to closely monitor USD moves this session so far, regaining momentum as the US dollar stalls recovery and drops back in the red.

EUR/USD bounces-off 1.1220

Currently, EUR/USD trades +0.21 higher at 1.1249, reversing a dip to fresh session lows struck at 1.1223 in the last hour.  The main currency pair caught a fresh bid-wave post-European open on the back of a risk-on rally in the European stocks, which drove the German bund yields higher.

Moreover, the greenback resumed its FOMC-back downtrend after a brief recovery, further adding to the fresh buying interest seen around the EUR/USD pair. While widening current account surplus in the Eurozone also provide the much-needed impetus to the EUR.

The euro zone's current account posted an increase in its surplus to EUR36.2 billion in the reported month, seasonally adjusted, compared with a revised EUR26.3 billion in the previous month, according to the ECB's report.

Data-wise, next in focus for the major remains the US housing starts and building permits data, while ECB President Draghi’s speech at SignsAward 2016, in Munich, will hog the limelight in the NA session.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1295/1.1300 (50-DMA/ post-FOMC high). A break beyond the last, doors will open for a test of 1.1350 (psychological levels). On the flip side, the immediate support is placed at 1.1200 (psychological levels) below which at 1.1188 (Jun 15 Low) could be tested.