EUR/USD takes-out 1.1200, what next?

The US dollar ran through fresh offers last hour, sending the EUR/USD pair back beyond 200-DMA to reclaim 1.12 handle.

EUR/USD on fire amid USD selling

Currently, EUR/USD trades +0.24% higher at fresh daily highs of 1.1203, having found solid support at 1.1170. A renewed bout of buying interest gripped the main currency pair as we step into the European session, mainly driven by aggressive selling seen in the US dollar against its major peers. The USD index, which gauges greenback’s relative strength, drops -0.17% to fresh session lows of 95.62, having finally brought an end to its consolidative phase.

Further, the renewed uptick in the major is also supported by a negative start to the European markets, which underpins the funding currency status of the euro.

Meanwhile, markets largely ignored dismal German PPI data, as focus now remains on the US housing data ahead of the Fed interest rates decision due tomorrow.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.1256 (Sept 16 high). A break beyond the last, doors will open for a test of 1.1286 (Sept 15 high). On the flip side, the immediate support is placed at 1.1175/70 (100-DMA/ key support) below which 1.1145 (weekly low) could be tested.