EUR/USD reverses early recovery gains, back below 1.0600 handle
|The EUR/USD pair failed to build on early tepid recovery move and has now drifting into to negative territory, adding on to Thursday's sharp reversal from three-week highs.
Currently trading marginally below 1.0600 handle, the pair ran through fresh offers as the shared currency continues to be undermined by ECB's surprise decision to extend its asset purchase program until December 2017, albeit at a tapered pace of €60 billion per month beginning April 2017.
Moreover, resurgent greenback buying interest, amid growing expectations of a faster Fed rate-tightening cycle in 2017, is further contributing to the pair's reversal from session peak level near 1.0630 region.
Later during NA session, the preliminary release of UoM US Consumer Sentiment index might provide some impetus for short-term traders. However, key focus would remain on the upcoming two-day FOMC meeting, which would be the next important fundamental trigger determining the pair's next leg of directional move.
Technical levels to watch
A follow through selling pressure below 1.0600 handle now seems to drag the pair back towards 1.0550-40 important horizontal support, which if broken is likely to turn the pair vulnerable to extend its near-term depreciating move, even below recent lows and 1.0500 psychological mark, towards testing March 2015 lows support near 1.0460-50 region. On the flip side, any recovery attempt beyond 1.0630 level (session peak) is likely to confront resistance near 1.0650 region above which a bout of short-covering could lift the pair back towards 1.0700 handle
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