EUR/USD extends overnight recovery move further beyond 1.0600 handle

Haresh Menghani FXStreet

The EUR/USD pair extended overnight recovery move from nearly 5-week lows and held on to its strength back above 1.0600 handle.

Currently trading around 1.0620-25 region, the pair on Wednesday ended four days of losing streak and was primarily driven by a sharp pull-back in the greenback led by cautious comments from the Fed Chair Janet Yellen, who said “economic performance has been quite disappointing". The comments prompted investors to trim their long-dollar positions despite of upbeat US economic reports released on Wednesday, which dragged the pair to 1.0520 region, its lowest level since Jan. 11.

On Thursday, a mild retracement in the US treasury bond yields further weighed on the greenback and is now helping the pair to hold comfortably above 1.0600 handle.

Today's economic docket features the release of ECB monetary policy meeting minutes, while from the US initial jobless claims, building permits, housing starts and Philly Fed manufacturing index would be looked upon for fresh impetus.

Technical levels to watch

Immediate resistance on the upside is pegged near 1.0635-40 region above which the pair is likely to aim towards 1.0675-80 horizontal resistance ahead of 1.0700 round figure mark. On the flip side, weakness back below 1.0600 handle now seems to find support near 1.0575 area, which if broken seems to drag the pair back towards 1.0525-20 support area (yesterday’s lows).

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.0597

21% Bullish
57% Bearish
21% Sideways

Bias Bearish

1 Month

Avg Forecast 1.0604

43% Bullish
57% Bearish
0% Sideways

Bias Bearish

1 Quarter

Avg Forecast 1.0369

13% Bullish
74% Bearish
13% Sideways

Bias Bearish

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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