EUR/USD turns positive above 1.1400, focus on Turkey

• The pair managed to leave behind lows in the 1.1360 region.
• The greenback drops to session lows in the boundaries of 96.20.
• Rumours citing the probable release of pastor Brunson helped the pair.

After bottoming out in new 13-month lows around 1.1360, EUR/USD has managed to gather some attention and has now retaken the key 1.1400 handle and beyond.

EUR/USD attention remains on Turkey

The pair abandoned the area of multi-month lows near 1.1360 and is now looking to extend the recently breakout of the key 1.1400 barrier, as the upside mood around the buck has diminished somewhat.

News that Turkey could release US pastor Brunson remove some tailwinds from the demand for safe haven currencies, sparking the current reaction in spot. The sentiment around the EM universe remains fragile, nonetheless, with jitters on the US-Turkey front and the potential contagion to the rest of the EM FX space poised to drive the sentiment in the near term.

On the USD-side, the US Dollar Index (DXY) left behind earlier 13-month tops in the mid-96.00s and is now retreating to the 96.30/20 band, as the risk aversion appears to be taking a breather.

EUR/USD levels to watch

At the moment, the pair is up 0.09% at 1.1420 and a breakout of 1.1559 (10-day SMA) would aim for 1.1623 (21-day SMA) and finally 1.1745 (high Jul.30). On the downside, the next support aligns at 1.1365 (2018 low Aug.13) seconded by 1.1312 (low Jul.5 2017) and then 1.1300 (psychological level).