EUR/USD trims losses, trading just below 50-DMA at 1.1140

The shared currency found some fresh buying interest at lower levels, with the EUR/USD pair rebounding to nearly erase majority of its daily losses.

Currently trading around 1.1140-35 region, the pair, in the post-BOE led volatility, touched a weekly low of 1.1114 before finding some respite following the US weekly jobless claims that came-in at 269k, slightly higher-than 265K expected.

Up next will be release of US factory orders for the month of June. The pair is unlikely to witness a wild reaction to the release as key focus remains on Friday's payrolls data (NFP), which would determine the near-term trajectory of the greenback and eventually drive the EUR/USD major.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "The 1 hour chart shows that the price is currently struggling with a bearish 20 SMA, while the technical indicators have quickly recovered from oversold readings and are pointing to enter positive territory, suggesting buying interest is taking its chances on dips. In the 4 hours chart, the price remains below a modestly bullish 20 SMA, while the technical indicators are recovering within bearish territory, but giving no clear clues on what's next for the pair. Above 1.1160, however, the recovery could extend up to 1.1200."

"Support levels: 1.1120 1.1085 1.1040
Resistance levels: 1.1160 1.1200 1.1235"