EUR/USD retreats from highs, around 1.0750

The demand for the single currency has eased a tad today, now prompting EUR/USD to abandon the area of daily highs and test the mid-1.0700s.

EUR/USD unchanged on US data

The pair posted no noticeable reaction after today’s US data releases, where Initial Claims rose by 244K WoW, taking the 4-Week Average to 243.00K from 247.25K.

Further data saw the Philly Fed Manufacturing Index dropping to 22.0 vs. 25.0 expected and down from March’s 32.8. On the brighter side, the Philly Fed Employment index rose to 19.9 from 17.5.

In the meantime, spot keeps the bullish tone intact so far this week, trading in the upper end of the recent range and well above the 1.0700 barrier, always against the backdrop of a poor performance of the greenback and rising yields in the German money markets. However, cautiousness among traders should start to pick up anytime soon in light of the upcoming French elections (Sunday), putting the ongoing rally to the test.

EUR/USD levels to watch

At the moment the pair is gaining 0.34% at 1.0747 facing the next hurdle at 1.0777 (high Apr.20) followed by 1.0841 (200-day sma) and finally 1.0905 (high Mar.27). On the flip side, a breach of 1.0686 (20-day sma) would target 1.0659 (55-day sma) en route to 1.0635 (low Apr.18).

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