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EUR/USD drops to lows near 1.1160 ahead of European open

FXStreet (Mumbai) - EUR/USD failed to resist the 1.12 barrier and fell back into the red in the early moves, as the US dollar resumed its correction higher amid improving risk sentiment.

EUR/USD rejected at 1.1200

The EUR/USD pair trades -0.21% lower at 1.1166, hovering close to fresh session lows struck at 1.1163 some minutes ago. The main currency pair stalled its tepid recovery just ahead of 1.12 handle and slipped back in the negative territory as the USD bulls jumped back into the bids on the back of a better risk environment.

Moreover, markets are predicting a higher for the European stocks, following a stronger performance by the Asian equities, which diminish the demand for the euro as a safe-haven, thereby weighing on EUR/USD. The pan-European benchmark, the Euro Stoxx 50 futures, trade 0.50% higher while the DAX futures are also seen marginally higher.

Meanwhile, markets are likely to stay focussed on Fed officials’ speeches in the day ahead as the macro calendar for today’s trading session remains fairly light.

EUR/USD Technical Levels

The pair has an immediate resistance at 1.1206 (Today’s High), above which gains could be extended to 1.1245 (Sept 3 High) levels. On the flip side, support is seen at 1.1130 (Sept 9 Low) below which it could extend losses to 1.1088 (Sept 4 Low) levels.

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