EUR/USD retreats from one-month high, still well bid above 1.0600

Haresh Menghani FXStreet

The EUR/USD pair trimmed some of its strong gains to one-month high and has now retreated back below mid-1.0600s.

Currently hovering around 50-day SMA, near 1.0640-45 region, hawkish comments from Philadelphia Fed President Patrick Harker, reinforcing prospects of three Fed rate-hikes in 2017, added fuel to mild greenback recovery led by slightly better-than-expected weekly jobless claims data.

However, it remains to be seen whether Wednesday's disappointment from Trump's press conference has been digested by the market or the latest leg of bounce witnessed in the key US Dollar Index, from 4-week lows, is on the back of some short-covering.

Next in focus would be the Fed Chair Janet Yellen's appearance, where nothing related to monetary policy is expected to emerge, but would still grab market attention.

Technical levels to watch

A follow through retracement below 1.0620 region, previous strong resistance now turned immediate support, could drag the pair back below 1.0600 handle towards testing its next support near 1.0575 level.

On the flip side, momentum back above 1.0670-75 region now seems to accelerate the move beyond 1.0700 handle, towards testing an important horizontal resistance near 1.0760-65 region.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.0552

25% Bullish
58% Bearish
17% Sideways

Bias Bearish

1 Month

Avg Forecast 1.0433

25% Bullish
75% Bearish
0% Sideways

Bias Bearish

1 Quarter

Avg Forecast 1.0311

6% Bullish
69% Bearish
25% Sideways

Bias Bearish

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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