EUR/USD erases losses and rises toward 1.1100

The US dollar lost strength in the market while the euro gained momentum. EUR/USD erased losses and is testing the 1.1100 area. 

Limited pullback

The pair reached earlier today at 1.1125, the highest level in three weeks. Then it started to retreat and accelerated after the UK Court ruling on Brexit and following the decision of the Bank of England that boosted the pound. 

It bottomed at 1.1058, slightly above yesterday’s lows. From the lows rebounded and erased losses. Currently, is attempting to rise above 1.1100 and also to hold above the 20-hour moving average that stands at 1.1090/95; a consolidation significantly above could add support to the euro. 

Volatility in the currency market is easing and it could continue to do so ahead of Friday’s NFP report in the US. Before the employment data, in the Eurozone, the Services PMI report will be released. 

EUR/USD technical levels 

To the upside, resistance levels might lie at 1.1075 (intraday level), 1.1125 (Nov 2 & 3 high) and 1.1150 (Sep 30 low). On the opposite direction, support could be seen at 1.1055/60 (daily low), 1.1025 (Oct 18 high) and 1.1000 (psychological).