EUR/USD: scored fresh session highs 1.1167

EUR/USD has scored fresh session highs of 1.1167 off lows of 1.1128.

EUR/USD is in a minor recovery as the start of this week while fending off the bear's within the May downtrend. The US dollar, while favourable in respect of the divergences between the Fed and ECD, has been better bid on the yield spread and it is debatable as to how much wider that spread can be when the Fed may only be able to hike twice for the remaining of 2016.

Fed's Kaplan speaking dovishly in Houston

Fed speakers have been hyping up June, but July has been brought into the picture as well as perhaps a more appropriate time given the risks that a Brexit poses.

June? A live meeting? Come again?

Meanwhile, data has been good again in the US housing sector, but Markit services dropped. The European session offered a good show of positive numbers in Germany with the IFO data beating expectations and confidence a basis point higher than expectations as well.

US: Markit services PMI at 51.2 in May

EUR/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that in the technical indicators remain flat near oversold territory. "A break below 1.1120, a major static support level, is required to confirm additional slides today, with scope then to test the 1.1040/50 price zone."

On the upside, the 100 sma on the hourly sticks is located at 1.1191 and a break of that opens the previous highs of 1.1242 (22nd May) and in the vicinity of the 200 sma on the 1hr sticks located at 1.1240. "Very near term we look for rallies to remain capped by 1.1280/1.1300," explained analysts at Commerzbank.