EUR/USD finds support and stabilizes around 1.1200

EUR/USD came under strong pressure during the New York session amid hawkish remarks from a Fed member, who lifted expectations of a short-term rate hike in the US.

EUR/USD continued to retreat from a post-ECB high of 1.3326 and hit a 3-day low of 1.1197 before finding support just ahead of the 10-day SMA. Having spent the last hours in a slim range, the pair was last trading at 1.1205, down 0.48% on the day but still headed for weekly gains.

Boston Fed President Eric Rosengren said low interest rates are increasing risks of overheating the US economy. "A failure to continue on the path of gradual removal of accommodation could shorten, rather than lengthen, the duration of this recovery," he said.     

EUR/USD levels to watch

In terms of technical levels, immediate supports are seen at 1.1194 (10-day SMA), 1.1137 (200-day SMA) and 1.1100 (psychological level). On the other hand, resistances are seen at 1.1284 (Sep 9 high), 1.1326 (Sep 8 high), 1.1340 (Aug 26 high) and 1.1365 (Aug 18 high).