EUR/USD rebounds from confluence of Fibo and 100-DMA support

Offered tone around EUR ran out of steam in Asia, helping the EUR/USD pair rebound from 1.1236 (confluence of 38.2% of Mar 2015 low-Aug 2015 high and 100-DMA).

Light data docket, focus on Brexit

The European data docket is empty with just Eurozone consumer confidence scheduled for release. Hence, the pair remains at the mercy of the Brexit related news flow. Later in the US session, the pair could be influenced by Yellen testimony.

Till last week or so, markets paid little attention to the implications of Brexit on Eurozone economy. Consequently, EUR/USD pair did not feel the heat the way Cable did.

However, ECB’s Draghi warned about the destabilizing effect of Brexit and expressed readiness to do more if required. Hence, the pair could wobble if Brexit fears make a comeback.

At the time of writing, the pair was trading at 1.1257 levels; up 0.13% on the day.

EUR/USD Technical Levels

The immediate resistance is seen at 1.1262 (5-DMA + 10-DMA), above which prices could test 1.1292 (50-DMA). A violation there would expose 1.1342 (Mar 17 high). On the contrary, a breakdown of immediate support at 1.1236 (confluence of 38.2% of Mar 2015 low-Aug 2015 high and 100-DMA) would shift risk in favor of a drop to 1.12 (zero figure) and 1.1131 (June 16 low).