EUR/USD supported near 5-DMA amid risk-off, PMIs eyed

After a brief stint to the upside witnessed a day before, the EUR/USD pair has turned lower this Tuesday, although continues to trade within familiar trading ranges, now capped below 1.1150.

EUR/USD making lower tops on daily charts

Currently, EUR/USD now trades -0.19% lower at 1.1133, consolidating near daily lows struck at 1.1125 in the last hour. The main currency pair stalled its bounce from 200-DMA just ahead of 1.1160 levels and drifted lower thereon, as the US dollar kept the bids intact against its major peers amid risk-off market profile.

Markets also remain on the back foot expectant that the UK may invoke article 50 in the upcoming days, which may trigger a fresh risk aversion wave across the financial markets, while central banks’ monetary policy divergence also returns to investors’ minds as we head towards the FOMC minutes likely to be released on Wednesday.

Calendar-wise, we have a series of final services PMI from the Euro area, apart from the Euro zone retail sales during the European session, while the US docket offers the factory orders and IBD/TIPP Economic Optimism data due later today.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1150 (psychological levels). A break beyond the last, doors will open for a test of 1.1194/1.1200 (20-DMA/ round number). On the flip side, the immediate support is placed at 1.1094 (200-DMA) below which at 1.1069 (Jul 1 low) could be tested.