EUR/USD reverses a dip to 1.0725 ahead of ECB, Eurogroup

Dhwani Mehta FXStreet

The bears appear to have loosened grip in the European, allowing a tepid bounce in EUR/USD from session troughs of 1.0726, as the greenback recedes gains versus most majors amid moderate risk-on sentiment.

EUR/USD reverts to 1.0740

Currently, the spot now trades -0.12% lower at 1.0737, struggling hard to regain the support-turned resistance located at 1.0740. The main currency pair keeps losses amid broad based US dollar recovery amid positive treasury yields.

Also, persisting risk-on market profile, evidenced by higher European equities and declining CBOE Volatility Index (VIX), collaborates to the downbeat tone around the euro. The VIX, fear gauge, drops -1.40%, suggesting risk-on persists at full steam.

Markets eagerly await the German central bank Chief Weidmann’s speech, alongside speeches from the ECB officials Mersch and Villeroy for fresh impetus on the common currency. While developments surrounding the Eurogroup meetings could also affect the EUR/USD price-action somewhat.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0773 (7-week high). A break beyond the last, doors will open for a test of 1.0800 (zero figure) and from there to 1.0841 (daily R3). On the flip side, the immediate support is placed at 1.0700 (round number/ 10-DMA) below which 1.0650 (key support) and 1.0638 (20-DMA) could be tested.

Sell 54%

Buy 46%

Avg Sell Price 1.0688

Avg Buy Price 1.0644

Liquidity Distribution

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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