EUR/USD pauses 2-day rebound, clings to 5-DMA

The bulls appear to take a breather in the Asian session after two consecutive sessions of recovery-gains, as the treasury yields are seen recovering some ground and in turn pushing the US dollar higher across the board.

EUR/USD capped below 10-DMA at 1.0595

Currently, the EUR/USD pair trades almost unchanged at 1.0578, and looks to consolidate recent gains, fuelled by the extension of declines in the US dollar across the board, in response to dwindling bets of a March Fed rate hike and rising uncertainty over the Trump administration’s progress towards the US tax reforms.

The major also remains underpinned by an updated report from Germany's central bank suggests the Governing Council is on course to conclude its easing-cycle. From a wider perspective, any recovery attempts in the EUR/USD pair look fragile, as the common currency remains undermined by mounting geopolitical concerns and resurgence of Greek debt crisis.

Meanwhile, in absence of economic events in the EUR calendar, the major will get influenced by the US new home sales and revised consumer sentiment data, slated for release in the NA session.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0595 (10-DMA). A break beyond the last, doors will open for a test of 1.0634 (50-DMA) and from there to 1.0650 (100-DMA). On the flip side, the immediate support is placed at 1.0520 (Jan 6 low) below which 1.0500 (psychological levels) and 1.0478 (Jan 5 low) could be tested.