EUR/USD stalls recovery from multi-month lows at daily pivot

EUR/USD’s pullback from near April 2015 lows lost legs at the daily pivot, now pushing the rate back towards the mid-point of 1.05 handle.

EUR/USD                                                                                                            

Currently, EUR/USD trades modestly flat at 1.0555, retreating from daily tops previously posted at 1.0578, where daily pivot intersects. The main currency pair shaved-off gains and traded muted in the mid-European session, as the euro failed to sustain the recovery against its US counterpart.

The major rebounded sharply from multi-month troughs near 1.0520 region and spiked to daily highs, largely on the back of a short-covering rally.

However, the latest leg down in the EUR/USD pair can be partly attributed to the ongoing comments from the ECB vice-president Constancio, while unimpressive Ifo surveys also weigh somewhat on the common currency.

Later today, the major is likely to remain exposed further downside risks as holiday-thinned trading is likely to exaggerate moves. The US markets are closed today in observance of Thanksgiving Day.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0578/90 (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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