EUR/USD holds 100-DMA support, still weak at 1.1225

Having posted a session high at 1.1264, the EUR/USD pair erased all of its early tepid gains and dropped to test 100-day SMA before bouncing off few pips to currently trade around 1.1225 level. 

Despite of its post-ECB upswing to 2-week high on Thursday, the pair failed to sustain its move beyond 1.1300 handle and came under intense selling. Moreover, hawkish comments from FOMC member Eric Rosengren on Friday fueled speculations of an eventual Fed rate-hike action and exerted further selling pressure around the pair.

On Monday, the pair intially rose to erase all of its Friday's losses but once again failed to build on to its momentum and retraced back into negative territory for second straight session. The pair, however, has managed to hold 100-day SMA support as markets now await for speech from FOMC member later during US session for fresh impetus. 

Technical levels to watch

A follow through selling pressure below 100-day SMA support near 1.1200 handle is likely to turn the pair vulnerable to continue drifting lower towards testing the very important 200-day SMA support near 1.1140 region. Meanwhile on the upside, 1.1260 area now seems to have emerged as immediate strong resistance above which the pair is likely to make a fresh attempt to reclaim 1.1300 handle and extend its upward trajectory in the near-term.