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    EUR/USD testing highs near 1.1260 ahead of Europe open Dhwani Mehta

    EUR/USD’s recovery is seen extending further as we head towards the European open, with the single currency finding fresh impetus from risk-averse market conditions.EUR/USD eyes 5-DMA at 1.1292Currently, EUR/USD trades 0.07% higher near fresh session highs of 1.1262, extending its rebound above 100-DMA at 1.1240. The main currency pair remains better bid and now heads towards 1.13 barrier as persisting uncertainty in the markets surrounding EU referendum coupled with oil price weakness, boosts the funding currency status of the euro.While the US dollar wipes-out gains and turns negative against its major rivals as markets have almost priced-out a rate hike this week, when the Fed announces its monetary policy decision accompanied by the Statement of Economic Projections (SEP) later this week.Focus remains on the yield differentials today, particularly the price-behaviour in the German bund yields, as they now trade muted near record lows of 0.010% seen last Friday.EUR/USD Technical Levels              In terms of technicals, the pair finds the immediate resistance 1.1292/1.1300 (5-DMA/ round number). A break beyond the last, doors will open for a test of 1.1340/50 (1h 100-SMA/ psychological levels). On the flip side, the immediate support is placed at 1.1200 (key support) below which at 1.1134 (Jun 3 Low) could be tested.

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