Following a drop to the 1.1880 region or daily lows, EUR/USD now manages to regain some upside impulse and retakes the 1.1900 neighbourhood. EUR/USD met some decent resistance in the 1.1920 zone earlier in the session, always amidst the re-emergence of the demand for the dollar. In fact, the greenback regains the smile on Tuesday and forces EUR/USD to shed part of Monday’s positive move to levels above 1.1900 the figure. The so-far pullback in the pair comes despite yields of the German 10-year benchmark climb to multi-week highs around -0.16%.

EUR/USD’s recovery lost momentum in the low-1.1900s for the time being. Price action around the pair is expected to exclusively follow the dollar dynamics, at least in the very near term and particularly after the latest FOMC event. In the meantime, support for the European currency comes in the form of auspicious results from fundamentals in the bloc coupled with higher morale, prospects of a strong rebound in the economic activity, and the investors’ appetite for riskier assets. So far, the spot is losing 0.14% at 1.1901 and a break below 1.1847 (monthly low Jun.18) would target 1.1835 (low Mar.9) and route to 1.1704 (2021 low Mar.31). On the other hand, the next up barrier lines up at 1.1992 (200-day SMA) followed by 1.2031 (100-day SMA) and finally 1.2064 (38.2% Fibo retracement of the November-January rally).