EUR/USD: Will buyers retain control above 1.0400?

Dhwani Mehta FXStreet

The recovery in the EUR/USD pair gained further traction in early Europe, driving the rate further into positive territory near the mid-point of 1.04 handle.

EUR/USD sees 80-pips recovery from 14-year lows

Currently, EUR/USD advances +0.28% to fresh daily highs of 1.0442, extending the break above 1.04 barrier. The main currency pair is on a steady recovery journey from more-than a decade lows, and runs through fresh bids last minutes amid extended correction seen in the US dollar against a basket of six major currencies.

The USD index broke below 103 handle to now trade at session lows of 102.94, extending the retreat from fourteen-year peaks reached at 103.57 in the US last session.

Moreover, the bulls fight back control in early Europe, as focus shifts towards the economic releases due out from the Euroland, including the final CPI and trade balance data. While the US housing data may also provide some incentives on the spot.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0500 (round figure). A break beyond the last, doors will open for a test of 1.0530 (5-DMA) and from there to 1.0585 (10-DMA). On the flip side, the immediate support is placed at 1.0400 (round number) below which 1.0366 (14-yr low) and 1.0300 (key support) could be tested.

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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