EUR/USD capped by 200-DMA as Moody’s lowers EZ growth outlook

The EUR/USD pair is seen consolidating the latest upmove below 200-DMA (1.1090), with the sentiment hit by Moody’s Eurozone growth outlook downgrade in wake of Brexit.

EUR/USD gathers pace for further upside?

Currently, EUR/USD now trades +0.12% higher at 1.1077, unable to take-out the key 200-DMA barrier.  The main currency pair trims gains as the euro came under mild selling pressure after headlines hit the wires that Moody’s slashed the UK as well as Eurozone growth forecasts following Brexit vote.

Moreover, a minor-recovery in the greenback against its major peers also dragged the EUR/USD pair off highs. The USD index now drops -0.13% to 96.20 versus -0.23% seen previously. While unimpressive German trade data also added to the fresh signs of weakness in the EUR. The trade surplus came in at EUR21.0 billion in May, missing the forecast of EUR23.5 billion and down from last month's surplus of EUR25.7 billion.

Next of note for the major remains the US non-farm payrolls data lined up for release later in the NA session, and is expected to create massive volatility across the financial markets.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1090/94 (200 & 5-DMA). A break beyond the last, doors will open for a test of 1.1129/50 (daily R1/ psychological levels). On the flip side, the immediate support is placed at 1.1029/22 (Jul 6 & Jun 30 low) below which 1.1006/00 (Jun 26 low/ round figure) could be tested.