EUR/USD - EUR/USD eyes 1.1100 and 1.1030 after rejection from 1.1377 - 03/23/2016 (GMT)

The euro edged down on Tuesday as investors reacted to the early Tuesday attacks in Brussels – Brussels airport and a metro station –, though hawkish comments from U.S. Federal Reserve official Charles Evans underpinned the U.S. currency. The last couple of days the movements are limited, however, the EUR/USD pair fell more than 1% since March 18.

It may be too early to say that the pair is looking bullish again following the aggressive rally from 1.0800, but there is certainly a slight bearish bias being seen in the price action right now following the failed attempt above the 1.1340 level. The 23.6% retracement level – 8 October lows to 2 January highs – has been providing clear support for the pair over the last year. A key resistance level in recent months has been 1.1500 and the pair is once again struggling at this level. Another level that is very significant is the 1.1380 barrier as the bulls failed in their last attempt to move above there. A break of either of these two levels could give a strong hint about the next move in the pair, with any move to the downside also needing to break through the significant level at 1.1030, which coincides with the 50-SMA and the 200-SMA on the daily chart, in order to confirm the short-term bearish bias.