EUR/USD drops further to 10-DMA as USD recovery picks-up pace

After a brief period of consolidation near lows, the EUR/USD pair meets fresh supply following a higher start to the European markets, against a backdrop of robust recovery staged by the greenback versus its major peers.

EUR/USD breaches NY low at 1.1159

Currently, EUR/USD trades -0.20% lower at fresh session lows of 1.1156, breaking lower in a bid to test 10-DMA support located at 1.1139. The main currency pair accelerates to the downside on a breach of NY lows, with the bears taking cues from the positive European open.

Moreover, fresh headlines from ECB that excess liquidity in the Eurozone ticked higher to E989.245bln Wednesday from E988.096bln the night before, also collaborated to a renewed sell-off in the EUR/USD pair.

Furthermore, the US dollar recovery across the board appears to gain momentum, which weighs on the major as well. Meanwhile, the USD index jumps +0.22% to fresh session highs of 95.80.

Focus now remains on the US jobless claims data for fresh cues on the USD price action, eventually impacting the euro-dollar.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1200.1209 (round number/ 100-DMA). A break beyond the last, doors will open for a test of 1.1250 (psychological levels). On the flip side, the immediate support is placed at 1.1124/19 (200 & 50-DMA) below which 1.1100/1.1092 (round number/ 20-DMA) could be tested.