EUR/USD: Gains capped by 1.1250, Fed Speak eyed

The EUR/USD pair is seen trading around a flat-line as we head into early Europe, after having failed to surpass 1.1250 barrier during the Asian trades.

EUR/USD stuck around 5-DMA at 1.1243

Currently, EUR/USD trades +0.06% higher at 1.1242, steadying on a recovery from 1.1199 levels. The main currency pair is trying hard to take on the recovery amid a minor-correction seen in the US dollar across the board, following Friday’s extensive rally

The USD index, which gauges greenback’s relative strength, rallied to fresh three-day highs of 95.58 last Friday, in response to hawkish comments from Fed member Eric Rosengren. Boston Fed President Rosengren noted that a gradual tightening this year appeared appropriate, sending the treasury yields through the roof and US stocks down in the dumps.

The upside in the major remains capped, with markets awaiting fresh comments from Fed Governor Lael Brainard, as she takes the center-stage later in the NA session. In the meantime, traders absorb the Fed’s Kashkari latest remarks on the US economy and Fed’s monetary policy stance.

EUR/USD Technical Levels               

In terms of technicals, the pair finds the immediate resistance 1.1300 (round number). A break beyond the last, doors will open for a test of 1.1343 (Aug 28 high). On the flip side, the immediate support is placed at 1.1224/13 (20 & 10-DMA) below which 1.1175/72 (200& 100-DMA) could be tested.