EUR/USD hovers below 1.12, eyes data and Fed speak

EUR/USD is working hard to stay above 1.12 levels amid broad based USD recovery in Asia following a two-day rally that saw prices jump from 1.1123 to 1.1257.

Offered at trend line hurdle

The common currency ran into offers yesterday around the resistance of the falling trend line drawn from Sep 8 high and Sep 15 high. Furthermore, the spot failed near Pivot level in the Asian session. Consequently, prices slipped to a low of 1.1194 and were last seen trading just below 1.12 handle.

EUR traders eye preliminary manufacturing ahead of speeches from Fed’s Harker, Mester and Lockhart.

EUR/USD Technical Levels

A break below immediate support of 1.1171 (10-DMA) would open doors for 1.1150 (200-DMA). A violation there could force unwinding of long position and yield a quick fire drop to 1.1070 (Aug 9 low). On the other hand, a break above 1.1212 (Asian session low) would shift risk in favor of a rise to 1.1248 (Pivot R1). Next major resistance is seen at 1.1284 (Sep 15 high).