EUR/USD retreats from 1.1250, refreshes session lows amid broad based USD recovery

The EUR/USD pair seems to have lost its upside momentum and has now surrendered all of its daily gains to session tops near mid-1.1200s.

The pair stalled overnight up-move from weekly lows led by FOMC meeting minutes, which dampened market expectations for a more hawkish tone and indications of aggressive Fed rate-hike actions through 2017. 

In absence of any fresh economic data from the Euro-zone, a goodish greenback recovery, with the key US Dollar Index bouncing off multi-month lows and retaking the 97.00 handle, seems to be only factor for the pair's retracement back to the lower end of daily trading range, around 1.1215-10 region. 

   •  EUR/USD diminished bets for a test of 1.1300 – UOB

With the Swiss, French and German markets closed in observance of Ascension Day, holiday-thinned conditions could have also led to the pair's erratic moves during mid-European session. 

Next in focus would be the US economic docket, featuring the release of weekly jobless claims and goods trade balance data, would now be looked upon for some fresh trading impetus.

Technical levels to watch

Bulls would be trying to defend the 1.1200 handle, below which the pair could slide back towards 1.1165 weekly support. A follow through selling pressure would turn the pair to extend the corrective slide further towards the key 1.1100 psychological mark. 

On the flip side, 1.1240-50 area remains immediate strong hurdle, which if cleared decisively would set the stage for extension of the pair's upward trajectory further towards Nov. 2016 swing highs resistance near the 1.1300 handle.