FXStreet (Mumbai) - The EUR bulls were offered support at the hourly 100-SMA placed at 1.0875 and hence, EUR/USD took on the recovery back towards 1.09 handle. EUR/USD downside limited by hourly 100-SMA Currently, the EUR/USD pair trades -0.20% lower at 1.0894, recovering nearly 20-pips from 1.0875 daily lows. The main currency pair trims losses and extends recovery in last hours as a renewed bout of risk-aversion gripped markets after the European equities pared gains. Germany’s DAX trades 0.14% higher versus +1.10% previous, while the pan-European benchmark, the Euro Stoxx 50 turned lower, now gaining +0.22% versus +1.35% seen in opening trades. Moreover, favourable sentiment towards the US dollar in wake of a series of economic data releases from the US on the cards later this week, while the divergent monetary policy outlook between the Fed and ECB comes back into the picture, particularly with the upcoming ECB meeting, keeps the euro under pressure versus the buck. Meanwhile, the US dollar index trades 0.15% at 99.13 levels. In absence of macro data today, attention now shifts towards tomorrow’s German ZEW and final CPI figures from the Euro land for further momentum on the pair. EUR/USD Technical Levels In terms of technicals, the pair finds the immediate resistance is seen at 1.0949/55 (daily R3/ 100-DMA). A break beyond the last, doors will open for a test of 1.0984/1.1000 (Jan 15 High/ round number). On the flip side, the immediate support is placed at 1.0875 (1h 100-SMA), below which 1.0801/00 (Jan 8 Low/ psychological levels) could be tested. For more information, read our latest forex news.