EUR/USD tests 200-DMA and retreats, German data eyed

The EUR/USD pair extends its upbeat momentum for the third straight day, although eases from nine-day highs reached above 1.11 handle a day before.

EUR/USD capped below 200-DMA at 1.1097

Currently, EUR/USD trades +0.06% higher at 1.1084, having posted session highs at 1.1097, where 200-DMA resistance intersects. The main currency pair finally ended its overnight consolidation phase and broke to the upside in the last hour, after the greenback came under renewed pressure across the board amid aggressive USD/JPY selling; following BOJ’s further easing. However, BOJ’s increase in ETF purchases disappointed markets.

The major failed to hold at higher levels as the bulls ran into the 200-DMA resistance, while attention now turns towards a host of economic releases from the Euroland, with the German retail sales data due to be reported ahead of the European session, followed by Eurozone CPI and GDP data. On the US calendar, we have the crucial GDP report and consumer sentiment data, which will grab a lot of attention.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1151 (50-DMA). A break beyond the last, doors will open for a test of 1.1200 (psychological levels). On the flip side, the immediate support is placed at 1.1043 (20-DMA) below which 1.1020 (10-DMA) could be tested.

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