EUR/USD keeps the red near 1.0640

The demand for the single currency remains subdued at the end of the week, sending EUR/USD to the lower bound of the weekly range near 1.0640.

EUR/USD focus on US data, Dollar

The pair is extending its decline today, so far closing the week in the positive territory for the first time after six consecutive pullbacks, including a 5-cent advance from 14-year lows near 1.0340 to the 1.0830 region seen in early February.

USD-dynamics, particularly exacerbated since President Trump took office late in January, stay as the main catalyst for the pair’s price action in the near to medium term, while the underlying constructive tone around the buck stays largely unchanged, always backed by the Fed-ECB policy divergence.

Yesterday’s comments by President D.Trump have unveiled his plans for a (‘phenomenal’) tax reform to be announced shortly, prompting the reflation/growth trade to resurface and at the same time add extra oxygen to the USD recovery.

Nothing worth mentioning data wise in Euroland, whereas the Export/Import Price index and the advanced Reuters/Michigan index for the month of February are all due across the pond.

EUR/USD levels to watch

At the moment the pair is losing 0.14% at 1.0644 facing the next support at 1.0636 (low Feb.10) followed by 1.0617 (low Jan.30) and finally 1.0606 (55-day sma). On the upside, a breakout of 1.0709 (20-day sma) would target 1.0715 (high Feb.8) en route to1.0770 (100-day sma) en route to 1.0829 (high Feb.2).