EUR/USD: Weaker below 1.0800 amid broad USD rebound

Dhwani Mehta FXStreet

After having failed just ahead of 1.0820 region for the second straight session, the EUR/USD pair remains on the offers in the Asian hours, now looking to extend its reversal below yesterday’s low reached at 1.0776 levels.

The spot extends its overnight retreat as a minor-recovery staged by the Wall Street fuelled a rebound in the treasury yields, which eventually aided the upturn in the greenback against its main competitors. The USD index bounced-off 7-week lows struck at 99.34 late-Wednesday, and now recovers to 99.65 levels.

Moreover, with a pause in the sell-off around the global equities, risk-on sentiment appears to be back in vogue, which weighs negatively on the funding currency Euro. Meanwhile, recent weak Eurozone current account data combined with dovish remarks from ECB policymaker Villeroy delivered a day before, also continue to dent the sentiment around the common currency.

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Looking ahead, the spot will remain at the mercy of the USD dynamics and risk trends ahead of the Trumpcare bill vote, which will shape up next direction for the greenback in the coming days. In the meantime, the US datasets and Fedspeaks due later in the NA session will keep the traders busy.

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EUR/USD Technical Levels

Valeria Bednarik at FXStreet explains, “In the 4 hours chart, technical indicators have resumed their advances within positive territory after approaching their mid-lines, whilst 20 SMA maintains a sharp bullish slope below the current level. The pair peaked at 1.0828 last Friday, the level to surpass to confirm additional gains up to 1.0873, December monthly high. As long as the price holds above the 1.0700 region, bulls will remain in control of the pair. Support levels: 1.0765 1.0730 1.0700 Resistance levels: 1.0830 1.0870 1.0910.”

1. R3 1.0874
2. R2 1.0850
3. R1 1.0823
PP 1.0799
1. S1 1.0773
2. S2 1.0749
3. S3 1.0722

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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