A fresh bout of USD selling across the board helped EUR/USD to extend the break above 1.06 handle, as focus remains on the upcoming macro news for further momentum.
EUR/USD regains 5-DMA and beyond
Currently, the spot now advances +0.44% to flirt with daily highs of 1.0650 reached some minutes ago. The EUR/USD pair broke the overnight consolidative mode to the upside and rallied sharply higher, in response to aggressive broad USD sell-off and negative Asian equities, as investors remain on the back foot ahead of the much-awaited UK PM May’s speech.
Moreover, expectations of an improvement in the German ZEW economic sentiment figures can be also partly attributed to the latest leg higher in the main currency pair, as we head towards the European opening bells. The German ZEW headline numbers are expected to arrive at 18.9 for January versus 13.8 last.
Besides, the German macro news, we have the US regional manufacturing index and a couple of Fedspeaks due later in the NA session. While markets may closely watch out for EUR/GBP moves on the UK PM May’s speech for any impact on the euro.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance 1.0667 (daily R2). A break beyond the last, doors will open for a test of 1.0687 (5-week tops) and from there to 1.0700 (zero figure). On the flip side, the immediate support is placed at 1.0591 (10-DMA) below which 1.0553 (50-DMA) and 1.0536 (20-DMA) could be tested.
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