EUR/USD once again struggles near 38.2% Fibo hurdle

EUR/USD ticked higher in Asia, but the momentum appears to have lost steam once again with prices hovering just below 1.1181 (38.2% of 1.1616-1.0911).

Stuck between 50-DMA and Fibo hurdle

The spot has been restricted largely to a range of 1.1152 (50-DMA) and 1.1181 (38.2% of 1.1616-1.0911) since yesterday’s Asian session. Friday’s broad based dollar selling stalled on Monday leaving the piar flat lined in the said range. Moreover, fresh demand for EUR isn’t gathering pace as markets fear Brexit fallout may have negative effects on Eurozone as well.

Furthermore, EUR buyers are on the sidelines as there is a belief that BOE rate cut this week would force ECB to expand its stimulus in September. The spot was last seen trading around 1.1170 levels.

EUR/USD Technical Levels

A break above 1.1181 (38.2% of 1.1616-1.0911) would open doors for 1.1236 (38.2% of 1.0463-1.1714 + 100-DMA). A violation there could yield 1.1264 (50% of 1.1616-1.0911). On the other hand, a breakdown of support at 1.1152 (50-DMA) would expose support at 1.1126 (5-DMA) - 1.11 (zero figure).