EUR/USD attempts a tepid recovery to 1.1025

The selling pressure around the Euro-zone shared currency seems to have exhausted, with the EUR/USD pair attempting a tepid recovery from session lows near 1.1010 region to currently trade around 1.1020-30 band. 

The pair maintained its negative bias through European trading session as disappointing ZEW economic sentiment failed to provide any respite. The selling pressure picked-up during early US trading session after the release of slightly better-than-expected US housing starts and building permits data that extended further support to the already buoyant US Dollar. 

Intense selling pressure dragged the pair to the lower end of its recent trading range support near 1.1020-10 region, which has been held in the post-Brexit calm. The pair, however, is showing resilience in breaking below this trading range, held for over 3-week, ahead of this week's ECB meeting on Thursday. 

Technical levels to watch

On a sustained weakness below 1.1000 psychological mark would confirm a break down and could turn the pair vulnerable to continue drifting lower in the near-term. Below 1.1000 support, the pair seems to head back towards retesting Brexit-led swing lows support near 1.0900 handle with some intermediate support near 1.0950 level.

Meanwhile on the upside, any recovery attempt might now confront strong resistance near the very important 200-day SMA region near 1.1090-1.1100 zone. A follow through buying interest above 200-day SMA now seems to assist the pair to stage additional recovery towards the top end of the recent trading resistance near 1.1165-75 region.