EUR/USD surge past 200-DMA to reclaim 1.1100 handle

The EUR/USD pair maintained its strong bid tone and cleared the very important 200-day SMA region to currently trade just above 1.1100 handle. 

On Wednesday, the pair initially dipped to 1.0960 strong support immediately after FOMC announced to keep interest rates unchanged. The pair, however, witnessed a sharp reversal on intense selling pressure surrounding the US Dollar as market participants remained skeptic over possibilities of an eventual Fed rate-hike in 2016.

The greenback extended its downward trajectory on Thursday and provided the required momentum to lift the pair back above 200-day SMA strong resistance near 1.1075-80 region.

Markets now turn their focus to today’s release of German CPI print, which would act as a precursor for the composite Euro-zone flash CPI reading due on Friday. Key macro release on Friday also includes the quarterly GDP release from the US, which might provide some respite to the greenback. 

Trade the US Gross Domestic Product - July 29 GDP Live Coverage

Technical levels to watch

On a sustained strength above 1.1100 handle, the pair seems to extend its bullish momentum towards 1.1150 resistance area, which if conquered should open room for a move beyond post-Brexit recovery highs resistance near 1.1180 region, towards reclaiming 1.1200 round figure mark.

Meanwhile on the downside, weakness back below 200-day SMA near 1.1080-75 region now seems to have turned as immediate support. Weakness back below 200-day SMA region, and a subsequent break below 1.1050 level, might negate the prospects of any further near-term appreciating move and turn the pair vulnerable to head back towards retesting 1.0960-50 strong support.