EUR/USD struggling to gain momentum beyond 1.0400 handle

The EUR/USD pair held on to its tepid recovery gains, albeit has struggled to gain further traction, and extended its consolidative price action throughout the European session.

Currently trading marginally above 1.0400 handle, a mild US Dollar retracement seems to be the only factor supporting the pair's recovery from fresh 14-year lows touched on Tuesday. The broader US Dollar Index retreats from 14-year high as investors seemed inclined to take some profits off the table following the recent up-surge in wake of Donald Trump's surprise victory in the US presidential election and hawkish FOMC forecast for 2017.

Looking at the broader picture, today's rebound could be seen as a technical pull-back from near-term oversold conditions and hence, would be categorized as a corrective move within a broader downtrend. 

Later during NA session, existing home sales data from the US would be looked upon for short-term trading opportunities ahead of key US macro data on Thursday, including the final GDP print for Q3 2016.

Technical levels to watch

A follow through buying interest above session peak resistance near 1.0420 region is likely to accelerate the up-move immediately towards 1.0445-50 resistance area above which a fresh bout of short-covering has the potential to lift the pair towards 1.0500 psychological mark resistance.

Meanwhile on the downside, sustained weakness below 1.0385-80 immediate support seems to drag the pair back towards Tuesday's multi-year lows support near 1.0350 region, which if broken should expose 2003 yearly lows support near 1.0335 level.