EUR/USD turns negative near 1.1100

The single currency has quickly given away its initial gains vs. the greenback, dragging EUR/USD to the vicinity of 1.1100 the figure.

EUR/USD drops on USD pick up

The pair has faded the initial spike to 4-day tops in the mid-1.1100s, coming back to test the 1.1100 neighbourhood following a bout of buying pressure in the US dollar.

In addition, Conservative Party member and favourite to be the next PM Theresa May, has asserted her intentions to honour the recent ‘Brexit’ vote, hurting sentiment. Previously, former London mayor Boris Johnson said he will not run for PM, adding to now prevailing uncertainty.

EUR/USD levels to watch

The pair is now losing 0.15% at 1.1105 and a break below 1.0913 (post-Brexit low Jun.24) would open the door to 1.0820 (low Mar.10) and finally 1.0709 (low Jan.5). On the other hand, the initial resistance aligns at 1.1128 (high Jun.29) followed by 1.1248 (20-day sma) en route to 1.1279 (55-day sma).