EUR/USD swings back to 1.1100 ahead of ECB accounts

The shared currency caught a fresh bid-wave and recovered losses against its American rival in the mid-European session, with EUR/USD now pushing higher in a bid to regain 1.11 handle.

EUR/USD bounces-off a dip to 1.1055

Currently, EUR/USD now modestly flat at 1.1096, making another to rise above 1.11 barrier. The main currency pair made a strong recovery from session troughs as risk sentiment improved after the European stocks rebounded alongside oil prices.

Moreover, the European currency found some support from the dovish FOMC minutes which continues to undermine the monetary policy divergence between the Fed and ECB, as markets gear up for the ECB monetary policy accounts of the June meeting scheduled to be published shortly.

While the main market driver for the major this week, remains the US labour market report, which will provide fresh hints on the Fed’s interest rate outlook amid persisting Brexit-related uncertainty rife across the financial markets.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1107/08 (Daily high/ 5-DMA). A break beyond the last, doors will open for a test of 1.1129/50 (daily R1/ psychological levels). On the flip side, the immediate support is placed at 1.1029/22 (Jul 6 & Jun 30 low) below which 1.1006/00 (Jun 26 low/ round figure) could be tested.