EUR/USD reverses Wednesday’s sell-off, 1.0480 closer

The recovery momentum in the EUR/USD pair gained further traction in early Europe, driving the rate closer towards previous highs reached near 1.0480 region.

EUR/USD awaits fresh impetus

Currently, EUR/USD advances +0.42% to hover near daily tops of 1.0464, extending a break above 5-DMA at 1.0443. The main currency pair has almost reversed yesterday’s sharp sell-off and now consolidates the overnight recovery from one-week lows, as investors now await fresh incentives from the sentiment on the European open.

The renewed upside in the major is largely on the back of an extension of the losses in the greenback versus its main competitors, while the euro also takes advantage of persisting risk-off sentiment, which boosts its funding currency status.

Looking ahead, we have a couple of second-tier data from the Euroland, including M3 money supply, while the US session is expected to emerge relatively eventful, in wake of the unemployment claims and goods trade balance release.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0473 (daily R1). A break beyond the last, doors will open for a test of 1.0500 (round figure) and from there to 1.0544 (Dec 15 high). On the flip side, the immediate support is placed at 1.0421 (daily pivot) below which 1.0400 (zero figure) and 1.0369 (previous low) could be tested.