EUR/USD off-highs, but keeps 1.1100 amid poor risk tone

The bid tone around the euro weakened a bit towards the late-Asian trades, now sending EUR/USD slightly away from a new three-week peak reached over the last hours.

EUR/USD: Upside capped just below 100-DMA at 1.1130                             

Currently, EUR/USD trades +0.17% higher at 1.1116, having once again found strong offers near 1.1125 region. The main currency pair is seen consolidating in a tight range near three-month highs, as persisting risk-averse conditions continue to underpin the low-yielding/ less risky currency euro.

Overall market sentiment remains sour as the US election jitters got further fuelled on reports that the FBI sources believe that Clinton Foundation is likely to face indictment.            

Next in focus for the major remains the Eurozone employment data and US ISM services PMI report, which will provide fresh impetus to the spot. While the BOE policy decision will be also closely eyed for any “rub-off” effect on the EUR.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.1130 (100-DMA). A break beyond the last, doors will open for a test of 1.1167 (daily S2) and from there to 1.1195 (200-DMA). On the flip side, the immediate support is placed at 1.1090 (daily pivot) below which 1.1047 (5-DMA) and 1.1000 (psychological levels) could be tested.