EUR/USD fades a spike to 10-DMA, US data in focus
|The ongoing recovery in the EUR/USD pair gained further traction in the European morning, sending the rate higher to test 10-DMA barrier located at 1.0589, before easing slightly to now trade near 1.0570 region.
EUR/USD awaits US data for fresh impetus
The EUR/USD pair is seen defending minor-recovery gains in the European session, as the greenback regains poise against most of its peer amid an extension of the rebound in US treasury yields across the curve. The USD index rises back to 101.16, bouncing-off a brief dip to 101.03 levels.
Meanwhile, any recovery in the main currency pair is likely to be considered a good selling opportunity, as the euro remains exposed to further downside risks, with markets pricing in a Marine Le Pen victory in the French elections, which implies France’s exit from the EU.
However, in the day ahead, the spot may find support from the risk-off tone prevalent in the market, in wake of the Scottish referendum fears back into focus and Trump’s tax policies –led uncertainty.
Data-wise, the Spanish CPI disappointed and added to the stalled recovery in EUR/USD, while attention turns towards the US macro news and Fedspeak due on the cards in the NA session.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance 1.0620 (weekly highs). A break beyond the last, doors will open for a test of 1.0636/39 (50 & 100-DMA) and from there to 1.0682 (Feb 16 high). On the flip side, the immediate support is placed at 1.0520 (Jan 6 low) below which 1.0500 (psychological levels) and 1.0478 (Jan 5 low) could be tested.
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