EUR/USD extend the correction below 1.1140

The shared currency remains on the defensive for the second session in a row vs. the greenback today, with EUR/USD navigating the 1.1140/30 band so far.

EUR/USD looks to the BoE

Spot has failed to extend the breakout of the 1.1200 handle on a more sustainable basis in recent sessions, allowing sellers to step in and spark the ongoing correction lower along with a pick up in the demand for the buck.

Auspicious results from July’s ADP report (179K) on Wednesday have lent extra oxygen to the UD dollar, helping the USD Index to rebound from multi-week lows and collaborate with the pair’s decline.

Later in the session, the pair will remain vigilant on the performance of EUR/GBP in response to the developments from the BoE meeting, with consensus expecting additional easing measures and the Sterling to remain under heavy pressure.

EUR/USD levels to watch

The pair is now losing 0.12% at 1.1136 facing the initial support at 1.1079 (200-day sma) ahead of 1.0950 (low Jul.25) and then 1.0913 (post-Brexit low Jun.24). On the other hand, a break above 1.1233 (high Aug.2) would open the door to 1.1235 (100-day sma) and then 1.1285 (base of the 8-month rising channel).