EUR/USD clings to data-led recovery gains beyond 1.06 mark

Haresh Menghani FXStreet

The EUR/USD pair extended impressive German data-led recovery move further and has now risen to fresh session tops near 1.0615-20 region.

Spot caught some fresh bids on Tuesday after the German ZEW Economic Sentiment Index rose in April to its highest level since August 2015. Upbeat German data pointed to robust economic situation in the Euro-zone's largest economy and provided a much needed respite for the shared currency.

Meanwhile, market seems to have largely ignored the disappointing Euro-zone industrial production data for the month of February, with a softer tone surrounding the greenback supporting a mildly positive sentiment surrounding the major. In fact, the key US Dollar Index extended previous session's retracement from 3-week highs and collaborated to the pair's modest recovery move for the second consecutive session, from one-month low touched on Monday.

Next on tap would the US economic docket, featuring the release of JOLTS Job Openings data but is unlikely to provide any meaningful impetus for the major. However, a scheduled speech by the Minneapolis Fed President Neel Kashkari should provide some short-term trading opportunities later during NY session.

Technical levels to watch

Immediate resistance is pegged near 1.0625 region (100-day SMA), above which the pair is likely to extend the recovery move further towards 1.0675-80 horizontal area ahead of the 1.0700 handle. On the downside, weakness back below 1.0600 mark might now turn the pair vulnerable to break below 1.0575-70 support area and head towards its next support near 1.0540 level en-route the key 1.0500 psychological mark.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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