EUR/USD extends rebound to test Friday’s high, Draghi eyed

The recovery in the EUR/USD pair from yearly lows gained traction in the European session, pushing the rate further into positive territory, in a bid to take-out Friday’s high reached at 1.0645 levels.

EUR/USD regains 5-DMA and beyond                                                             

Currently, EUR/USD jumps +0.43% to trade near daily highs of 1.0638, having found strong bids near 1.06 handle. The main currency pair stalled its 10-day selling spiral and now extends the rebound from the lowest levels since December 2015, mainly driven by extension of the corrective slide in the US dollar versus its six major competitors.

Moreover, amid a lack of significant fundamental events lined up for release today, the USD dynamics will remain the key driver for the EUR/USD pair, ahead of ECB Chief Draghi’s speech scheduled in the NA session, which will be closely watched for any clue on the central bank’s bond buying program.

ECB Draghi is due to testify about the European Central Bank's (ECB) Annual Report before the European Parliament, in Strasbourg

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 1.0675 (1h 100-SMA) and from there to 1.0700 (round figure). On the flip side, the immediate support is placed at 1.0579 (daily lows) below which 1.0567 (multi-month low) and 1.0556 (Nov 2015 low) could be tested.

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