The US dollar reversed its trend across the board and bounced to the downside, erasing most of the day’s gains. EUR/USD rose more than fifty pips from the lows.
The pair tumbled to 1.0519 following the release of US inflation and retail sales data. Both reports showed larger-than-expected numbers, increasing traders expectations of a March rate hike from the Federal Reserve boosting the US dollar index to fresh weekly highs.
The greenback then reversed, probably amid some profit taking and EUR/USD erased all gains quickly. Recently it reached 1.0580, level located just five pips below Asian session highs.
The pair was trading at 1.0570/75, around the same level it closed yesterday. The rebound in the pair came from an important support level located at 1.0520, that area could become again an important support.
To the upside, a relevant level could be seen at 1.0590, where a short-term downtrend currently stands as also the 55-hours moving average. A break higher could open the doors for a sustained recovery above 1.0600.