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EUR/USD: Recovery stalls near hourly 20-SMA

FXStreet (Mumbai) - The EUR/USD pair extends recovery from the ECB Nowotny comments-led drop and now attempts to break through 1.1465 region amid rebounding European stocks.

EUR/USD back above daily pivot

The EUR/USD pair trades -0.16% lower at 1.1456, retreating from fresh session lows reached at 1.1425 levels in last hours. The major trims losses and now looks to resume its upward march in a bid to surpass 1.15 barrier.

However, the pair finds it difficult to break through the immediate resistance near 1.1465, the intersection of the hourly 5 & 20-SMA, and the recovery remains short-lived as the solid comeback in the European markets continue to weigh on the funding currency – the euro. The pan European benchmark, the Euro Stoxx 50 jumps 1.13% to 3,228 while the DAX rallies over 1% to 10,020.

In last hours, the major dropped sharply from almost 1.15 barrier following the comments from ECB Nowotny. The ECB policymaker noted that the central bank needs to adopt additional sets of instruments, including structural tools, in an effort to bring inflation levels back on track.

Looking ahead, markets await the US data releases and Fed speaks for further cues on pair amid a data-deficient EUR calendar.

EUR/USD Technical Levels

The pair keeps the bid tone intact, supported by higher daily RSI and the pivot. On its way up, the major faces immediate resistance at 1.1496/1.15 (daily high & round number), beyond which 1.1562 (Aug 26 High) would be tested. While the immediate support is located at 1.1425/21 (today’s low & hourly 50-SMA), a breach of the last would expose 1.1406/1.1400 (5-DMA & psychological levels).

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