EUR/USD deflates to 1.1110 ahead of European open

The single currency is now losing some of its shine, dragging EUR/USD to the 1.1115/10 band.

EUR/USD attention to EU Summit

Spot has managed to rebound from yesterday’s troughs around 1.1060 – where sits the key 200-day sma – although the bullish attempt seems to have run out of steam in the vicinity of 1.1130 so far.

The resurgence of the risk-on trade along with a positive performance of the US dollar as of late has undermined EUR-bulls, accentuating the drop from recent peaks near 1.1400 the figure.

In the meantime, the EU Summit in Brussels is poised to grab all the attention today, while EMU’s preliminary Consumer Confidence gauge for the current month is due this evening.

EUR/USD levels to watch

The pair is now advancing 0.14% at 1.1114 facing the next hurdle at 1.1220 (23.6% Fibo of December up-move) followed by 1.1378 (high Feb.11) and then 1.1496 (monthly high Oct.20 2015). On the flip side, a breakdown of 1.1051 (200-day sma) would target 1.0965 (61.8% Fibo of December up-move) and finally 1.0709 (YTD low Jan.5).

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