The bulls take a breather over the last hours, stalling the Asian recovery in EUR/USD from just ahead of the mid-point of 1.06 handle. The upside consolidation phase seen in the spot is largely on the back of stalled corrective slide in the greenback versus its main peers.
The greenback extended its Friday’s corrective slide earlier on the day, providing extra legs to the ongoing recovery in EUR/USD. The major benefited from downbeat data released out of the US on Friday, showing a slight dip in the Core PCE price index, while the personal spending and consumer sentiment data came in below estimates.
Focus now shifts towards the key US NFP report due later this week for fresh direction on the pair. In the meantime, markets look forward to the manufacturing PMI reports lined up for release from both continents later today.
EUR/USD Technical Levels
Franco Shao at ForexCycle.com explains, “EURUSD’s downward movement from 1.0905 extended to as low as 1.0650. Near term resistance is at 1.0705, as long as this level holds, the downtrend could be expected to continue, and next target would be at 1.0600 area. On the upside, a break of 1.0705 resistance will indicate that correction for the downward movement is underway, then the pair would rebound to 1.0750 – 1.0800 area.”
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