EUR/USD hits fresh highs near 1.1340, then retreats

The retreat from multi-week lows in the EUR/USD pair stalled near 1.1270 region in Asia, allowing a tepid bounce back towards 1.13 handle in early Europe.

EUR/USD trades above all major DMAs

Currently, EUR/USD trades +0.11% higher at 1.1332, having scored fresh session highs at 1.1337 last minutes. The shared currency extends its rebound from 1.1270 level into a second day today, now pushing EUR/USD towards the mid-point of 1.13 handle.

The latest leg higher in the euro-dollar pair is mainly attributed to the extended retreat in the US dollar across the board. The USD index drops -0.11% and flirts with session lows struck at 94.40.  

The USD bulls continue to correct lower from the solid rally witnessed last Asian session, with higher treasury yields providing little support to the greenback. While poor risk sentiment persisting across Asia boosts the funding currency status of the euro.

All eyes now turn to a raft of flash manufacturing PMI releases from across the euro area for fresh impetus, after a data-empty macro calendar experienced a day before.

EUR/USD Technical Levels               

In terms of technicals, the pair finds the immediate resistance 1.1367 (post-Brexit high). A break beyond the last, doors will open for a test of 1.1400 (round figure). On the flip side, the immediate support is placed at 1.1270 (10-DMA) below which 1.1206/03 (100 & 20-DMA) could be tested.