The EUR/USD pair maintained its bearish trading bias on Tuesday and is currently trading closer to the lower end of daily trading range, around 1.0740-45 region.
Today's mixed Euro-zone PMI readings failed to impress bulls and assist the pair to build on to its recent leg of up-move from 50-day SMA support. Moreover, a broad based greenback recovery, led by a sharp rebound in the US treasury bond yields, also collaborated to the pair's corrective move from the highest level since early December.
In fact, the key US Dollar Index has managed to stage a goodish recovery from 7-week lows, despite of Trump’s Treasury Secretary pick Steven Mnuchin warning on strong dollar. The greenback, however, struggled to extend recovery move amid growing concerns over the US President Donald Trump's protectionist stance and uncertainty surrounding his fiscal stimulus policies.
Next on tap would be the release of flash manufacturing PMI and existing home sales data from the US, which would be looked upon for some short-term trading opportunities.
Technical levels to watch
Immediate support is pegged near 1.0715-10 region below which the pair is likely to immediately slide to 1.0680-75 horizontal support, en-route 1.0625 intermediate level and 50-day SMA strong support near 1.0590-85 region.
On the upside, sustained move above 1.0765 level should assist the pair to build on to its recovery momentum and lift it beyond 1.0800 handle, towards testing its next major hurdle near 1.0820 level ahead of 100-day SMA strong resistance near 1.0840-45 region.
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