EUR/USD trims gains near 1.0750 as T-yields retreat stalls

The bid tone behind the EUR/USD pair weakened a bit last hours, now pushing the rate below 1.0750 levels, as investors focus shifts to a slew of US macro releases due later today.

EUR/USD: Eurozone GDP, ZEW in focus                                                          

Currently, EUR/USD now advances +0.20% to 1.0743, having previously posted daily tops at 1.0760. The main currency pair is seen receding gains as we head into early Europe, largely on the back of stalled selling in the US treasury yields, which offers some respite to the USD bulls. Meanwhile, the USD index drops -0.17% to hover around 100 mark, and looks to retest multi-month tops scored at 100.28.

Moreover, a better risk tone seen in markets amid higher Asian stocks and rebound in oil prices, also affects the funding currency status of the euro somewhat. Later in the day, markets look forward to the speech by FOMC member Bullard ahead of the US economic releases, including the US PPI data, which will be released in the NA session.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0777 (5-DMA). A break beyond the last, doors will open for a test of 1.0800 (round figure) and from there to 1.0850 (psychological levels). On the flip side, the immediate support is placed at 1.0709 (10-month lows) below which 1.0642 (daily S2) and 1.0600 (zero figure) could be tested.

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