EUR/USD bounces-back above 1.1850, 1.1900 back on sight?

The retreat from two-and-a half year tops of 1.1909 stalled in the Asian session at 1.1835 levels, allowing EUR/USD to attempt a tepid recovery back towards 1.19 threshold.

EUR/USD: Further upside in play?

With the broad based US dollar recovery losing steam heading into early Europe, the EUR bulls are seen fighting back control after a brief corrective slide witnessed in overnight trades.

The EUR/USD pair peaked just ahead of 1.19 handle, after the US dollar was dumped across the board on the back renewed geo-political tensions around the latest US sanctions on Russia, especially with the EU warning to take action on the US should the new sanctions hurt its economic interests.

Later today, the USD dynamics will continue to play a key determinant in EUR/USD’s price action until the US ISM services PMI release. Meanwhile, the BOE’s events could have a rub-off effect on the spot.

EUR/USD Technical Set-up  

According to Jim Langlands at FX Charts: “Back above 1.0910/10 though, there is very little resistance to stand in the way of a move towards 1.2000, and the next Fibo level is not actually seen until 1.2165 (50% of 1.3993/1.0340). While the daily momentum indicators are overbought, hinting at a possible correction, the weekly and monthly charts are both heading firmly higher.”

“On the downside, near term support arrives at the session low and at the 200 WMA, at 1.1785. Below there, we could head back to the 31 July low of 1.1722 and eventually to 28 July’s low of 1.1670, although a little unlikely at this stage,” Jiim adds.