EUR/USD testing highs near 1.0850, German data eyed

FXStreet (Mumbai) - EUR/USD wiped out previous losses and advanced gradually during the Asian session, as the US dollar took a breather in its rally and fell in red against its major competitors ahead of FOMC minutes due later in the day.

German factory orders in focus

The EUR/USD trades higher by 0.30% at 1.0847 levels, hovering close to fresh session highs posted at 1.0854 levels. EUR/USD extends its recovery mode ahead of Europe open as the US dollar weakened across the board on profit-taking following heavy gains seen in the previous session.

Meanwhile, traders await German factory orders and EMU retail sales numbers in order to confirm that the ECB QE and lower oil prices are indeed having positive impact on the European economies. Also, Greece scenario and FOMC minutes will be closely watched for further momentum on the main currency pair.

EUR/USD Technical Levels

The pair has an immediate resistance at 1.0866 (10-DMA) levels, above which gains could be extended to 1.0900 levels. On the flip side, support is seen at 1.0821 (Today’s Low) below which it could extend losses to 1.0800 levels.

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