EUR/USD reclaims 1.1300 handle amid broad based USD retracement

The greenback is seen reversing some of its early strong gains recorded on Monday, with the EUR/USD pair staging a smart recovery from session low at 1.1271 level to currently trade back above 1.1300 handle. 

Last week's hawkish comments from Fed policymakers had been the key factor driving the US Dollar higher since the end of last week. Amid increasing prospects of an eventual Fed rate-hike by the end of this year, markets now look forward to the Fed Chair Janet Yellen's speech at the Jackson Hole Symposium later during this week. 

In the meantime, this week's macro releases from the US - durable goods order and revised estimate of US Q2 GDP, would help traders to grab short-term momentum play. 

Technical levels to watch

The pair is rebounding from a short-term ascending trend-channel formation on 4-hourly chart and hence, a follow through buying interest above 1.1300 handle, and leading to a subsequent strength above session high resistance near 1.1320-25 area, should now pave way for resumption of the pair's near-term bullish momentum and lift its towards testing the trend-channel resistance near 1.1400 round figure mark.

Meanwhile, bulls will be disheartened if the pair fails to hold 1.1270-60 ascending trend-channel support, below which the pair could accelerate the downslide immediately towards 1.1200 mark. Below 1.1200 handle, the downfall could further get extended towards 1.1150 intermediate support before the pair aims back towards retesting the very important 200-day SMA support near 1.1100-1.1090 region.