EUR/USD stabilizes around 1.1130

FXStreet (Mumbai) - The shared currency remains elevated versus the American dollar in the European session, keeping EUR/USD supported above 1.11 handle. The major retains gains, boosted by upbeat comments from European Central Bank’s (ECB) Nowotny. While higher German yields also keeps the main currency pair underpinned.

EUR/USD holds above 1.1100

The EUR/USD pair trades 0.14% at 1.1130, recovering from 1.1116 dip. The EUR/USD pair trims gains, although remains supported as markets continue to digest upbeat German data as well as pro-EUR ECB Nowotny comments stating that QE is a ‘success story.’

Moreover, a retreat in German bund yields also put a check on EUR/USD. The 10-yr yields on bunds now stands at 0.856, recording 0.47% gain on the day.

Meanwhile, markets remain cautious amid seemingly never-ending drama to reach a deal with its creditors and avert a default catastrophe continued to hover in the background for the euro.

EUR/USD Technical Levels

The pair has an immediate resistance at 1.1156 (May 20 High) levels, above which gains could be extended to 1.1181 (May 21 High) levels. On the flip side, support is seen at 1.1084 (Today’s Low) below which it could extend losses to 1.1048 (June 5 Low) levels.

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