EUR/USD rebounds from 1-week lows

EUR/USD bounced to the upside during the last hours after the rally of the US dollar across the board lost strength. The pair bottomed earlier at 1.0512 hitting the lowest level in a week and currently is trading at 1.0535/40, still in negative territory for the day. 

The recovery from the lows was capped by the 1.0545/50 area the continues to be an important intraday resistance. Greenback still holds a bullish tone in the market for the day, but momentum eased. 

The lastest round of US economic data showed a reading of 54.2 in the Market PMI manufacturing index and the ISM rose from 56.0 to 57.7; construction spending fell 1.0% in January surprising market analysts that expected an increase of 0.6%. 

Levels to watch 

To the upside, resistance levels might be seen at 1.0545/50, followed by 1.0585/90 (daily high) and 1.0615/20 (Feb 24 high). On the downside, support could be located at 1.0520, 1.0490/95 (last week low) and 1.0455 (Jan 11 low). 

A daily close below 1.0530 would be the lowest since January 4 and from a technical perspective would add pressure to the 1.0500 handle. A consolidation below 1.0500, could open the doors for a test of December lows.