EUR/USD comes down to retest 5-DMA at 1.1130

The EUR/USD pair almost reversed a knee-jerk spike to daily tops at 1.1185 levels and now reverts to the lower bound of today’s trading range near 1.1130 region.

EUR/USD sold-off shy of 20-DMAat 1.1194

Currently, EUR/USD now trades -0.15% lower at 1.1135, now looking to test daily lows struck earlier at 1.1120. The main currency pair came under renewed selling pressure over the last hour as the greenback regained lost footing against its major peers, with the DXY heading +0.13% higher at 95.75.

Moreover, aggressive selling pressure seen in the cable on the back of resurfacing Brexit jitters ahead of the BOE Financial Stability Report & Carney’s speech also has a rub-off effect on the EUR/USD pair. The GBP/USD pair slumped to the lowest levels since 1985 at 1.3115 last minutes, down -1.20% on the day.

Earlier on the day, the EUR/USD pair spiked to 1.1185 region after the European traders bought the euro on news that the Italian policy makers is looking to prop up its banking sector by seeking to use Article 32 of the EU's bank resolution directive

Meanwhile, markets failed to benefit from upbeat Eurozone and German services PMI data, while in line with expectations Euro zone retail sales data has little impact on the major.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1194/1.1200 (20-DMA/ round number). A break beyond the last, doors will open for a test of 1.1250 (psychological levels). On the flip side, the immediate support is placed at 1.1094 (200-DMA) below which 1.1069 (Jul 1 low) could be tested.