The EUR/USD pair finally broke higher from the Asian consolidation box and resumed the upside back towards the mid-point of 1.06 handle, however, the bears queued up near the last, sending the rate slight lower towards daily pivot at 1.0623.
EUR/USD: DXY attempts tepid-bounce
Currently, the spot now gains +0.20% to trade at 1.0633, having posted session highs at 1.0644 earlier on the day. EUR/USD remains on the bids, but further upside seems contained amid stalled selling in the greenback versus its main competitors, with the USD index now recovering to 101.33 from session lows struck near 101.20.
While a minor-rebound staged by the European stocks also weighed on the funding currency demand for the euro, keeping EUR/USD capped below 1.0650 – psychological levels.
Markets eagerly await a slew of US economic data, with the US retail sales and PPI data to kick-off an eventful NA session, followed by FOMC member Harker’s speech and Prelim UoM Consumer Sentiment, wrapping up a light economic calendar this week.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance 1.0650 (psychological levels). A break beyond the last, doors will open for a test of 1.0687 (5-week tops) and from there to 1.0700 (zero figure). On the flip side, the immediate support is placed at 1.0604 (daily low) below which 1.0587 (5-DMA) and 1.0550 (10-DMA) could be tested.