The US dollar reverses a part of Fed Yellen’s comments induced sell-off, exerting downward pressure on EUR/USD, as we head into a data-light EUR calendar.
EUR/USD: Trump’s inauguration speech eyed
Currently, the spot now gains +0.12% to trade at 1.0678, testing daily lows struck at 1.0671 last hour. The EUR/USD pair faced rejection just shy of 1.07 handle, and retreated from there amid a minor broad based recovery in the US dollar, as the US treasury yields trim losses.
The major rallied in early Asia to test 1.0700 levels after the greenback dropped across the board on Fed Chair Yellen’s less hawkish take on the monetary policy stance. With the ECB decision now behind, the US President-elect Trump’s inauguration will take the center-stage, with all ears to any hints on his campaign promises of more fiscal spending and tax reforms.
Another disappointment from Trump today, will trigger a massive selling spiral in the greenback, taking EUR/USD back to December highs near 1.08 handle.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance 1.0719 (multi-week high). A break beyond the last, doors will open for a test of 1.0746 (Nov 17 high) and from there to 1.0764 (100-DMA). On the flip side, the immediate support is placed at 1.0657 (5-DMA) below which 1.0631 (10-DMA) and 1.0600 (zero figure) could be tested.
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