EUR/USD bounces-off 1.0600 amid thin trading

Dhwani Mehta FXStreet

EUR/USD attempted a tepid-bounce from a dip to 1.0600 levels, and now heads back towards daily tops previously posted at 1.0633.

EUR/USD holds 1.06, but for how long?

Currently, the spot trades almost unchanged at 1.0615, as investors await fresh cues from the sentiment on the European markets, with the US dollar extending its upside consolidation phase into Europe amid weaker treasury yields and a non-event FOMC member Mester’s speech.

However, it remains to be seen if the major sustains the recovery mode, as the technical indicators point towards further downside risks, particularly below a break of 1.0520 levels. EUR/USD: RSI and MACDs are consistent with losses – BBH

Next on tap for EUR/USD remains the German PPI data, which may have virtually no impact on the euro, while traders may closely eye the German Bundesbank monthly report for fresh impetus amid a light, holiday-thinned trading session today.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0626/33 (5-DMA/ daily high). A break beyond the last, doors will open for a test of 1.0666 (100-DMA) and from there to 1.0683 (20-DMA). On the flip side, the immediate support is placed at 1.0582 (daily S3) below which 1.0520 (Jan 6 low) and 1.0500 (psychological levels) could be tested.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.0635

43% Bullish
57% Bearish
0% Sideways

Bias Bearish

1 Month

Avg Forecast 1.0659

40% Bullish
40% Bearish
20% Sideways

Bias Neutral

1 Quarter

Avg Forecast 1.0419

11% Bullish
68% Bearish
21% Sideways

Bias Bearish

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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