EUR/USD: Bears in control, flirts with 1.1200

The EUR/USD pair is seen on a gradually declining trend so far this session, having faced fresh offers near 1.1220 region in early Asia.

EUR/USD awaits US ADP for fresh impetus

Currently, EUR/USD trades -0.11% lower at t 1.1199, testing session lows struck at 1.1197 some minutes ago. The bears are seen extending control into early European trading, as improved risk sentiment appears to weigh on the funding currency status of the euro. The Japanese stocks are seen trading firmer, while oil prices pare losses as we progress towards the European session.

However, the main driver behind the latest move lower in the major is the strengthening US dollar across the board. The USD bulls continue to ride higher on much better-than expected US manufacturing PMI reports released yesterday, which adds onto the Fed rate hike case for this year. The USD index hovers near session highs reached at 95.84, up +0.15% on the day.

The major is likely to get influenced by the broader market sentiment and Deutsche bank-related news flow, in absence of relevant economic data due for release from both continents.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.1251 (Sept 30 high). A break beyond the last, doors will open for a test of 1.1286 (Sept 15 high) and from there to 1.1300 (round figure). On the flip side, the immediate support is placed at 1.1171 (100-DMA) below which 1.1145 (static support) and 1.1119 (Sept 21 low) could be tested.