EUR/USD hovers near 11-week low in holiday-thinned trade

EUR/USD managed to bounce from fresh 11-week lows struck during the Asian session, but the advance was limited, with thin trading conditions due to US Memorial Day holiday confining the pair to a range over the last hours.

EUR/USD briefly dropped below the 1.11 mark, but found support at the 50-week SMA at 1.1097 and staged a mild bounce which remained capped by the 1.1145 zone. Having traded in a 20-pip range most of the session, the pair was last at 1.1137, up 0.22% on Monday.

Trading is expected to remain subdued over the next days even after liquidity increases to normal levels, as investors await the ECB policy meeting on Thursday - no changes expected -  and US employment report on Friday, which could boost rate hike expectations should it come on the strong side.

EUR/USD levels to watch

As for technical levels, next resistances could be found at 1.1171 (100-day SMA), 1.1200 (May 27 high/psychological level) and 1.1242 (May 23 high). On the flip side, supports are seen at  1.1097 (May 30 low),  1.1057 (Mar 16 low) and 1.1024 (Mar 7 low).