EUR/USD rebounds to 1.0550 in early Europe, German Ifo eyed

The EUR/USD pair stalled its overnight recovery and dropped sharply to hit fresh yearly lows at 1.0525, before embarking upon a tepid-bounce to climb back towards the mid-point of 1.05 handle.

EUR/USD awaits German Ifo                                                                            

Currently, EUR/USD trades -0.06% lower at 1.0648, having posted fresh session highs at 1.0551 last minutes. The main currency pair is attempting recovery once again to test strong offer placed just ahead of 1.0550 levels, from where it began its decline in the early Asian trading.

The renewed bids seen around the EUR/USD pair is mainly in response to a broad based retreat in the US dollar, after the USD bulls ran into resistances once against placed just shy of 102 handle.

Ahead of the European open, markets remain on the back foot, as the major is expected to come under fresh selling pressure, once European traders hit their desks and react to the hawkish Fed minutes.

Looking ahead, amid thin liquidity conditions, the euro is expected to derive from the upcoming German Ifo surveys, which is expected to show a minor improvement in the German business morale.  

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0576/89 (daily pivot/ 5-DMA). A break beyond the last, doors will open for a test of 1.0629 (daily R1) and from there to 1.0647 (Nov 23 high). On the flip side, the immediate support is placed at 1.0525 (multi-month low) below which 1.0500 (zero figure) and 1.0456 (March 2015 low) could be tested.

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