EUR/USD reverses back below 1.1200 amid light trading

With the Asian traders away on a National holiday, the EUR/USD pair traded largely subdued amid low volumes and limited volatility, having failed to hold above 1.12 handle.

EUR/USD rejected once again above 1.12 handle

Currently, EUR/USD trades almost unchanged at 1.1188, hovering close to fresh session lows reached at 1.1185 last minutes. The main currency pair ran into the 1.1200 resistance and turned lower from there, now testing daily lows with no specific catalyst behind the renewed weakness, except for the broad based US dollar recovery from FOMC induced steep losses.

The US dollars slumped against its major rivals yesterday, after the FOMC not a less aggressive rise in interest rates this year and over the next two years, while adopting a cautious approach and revising economic forecasts lower.

Markets now eagerly await ECB Draghi’s speech due ahead of the US open, especially after BOJ and FOMC policy decision. While US existing home sales data will fill in an otherwise light economic calendar today.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.1202/1.1213 (daily high/ Sept 20 high). A break beyond the last, doors will open for a test of 1.1256 (Sept 16 high). On the flip side, the immediate support is placed at 1.1173 (5-DMA) below which 1.1119 (Sept 21 low) could be tested.