EUR/USD drops back to 1.0740 on notable USD demand

After having witnessed a tepid-bounce late-Wednesday, the EUR/USD pair is back on the offers in Asia, now printing fresh daily lows near the mid-point of 1.07 handle.

The spot resumes the slide as the greenback regains poise across the board, as the Asian traders react to the positive US data and hawkish Fedspeaks delivered yesterday, while a better risk tone prevalent in markets amid higher yields and on Trump infrastructure headlines, also adds to the bids seen around the buck.

Meanwhile, the dovish reports from the ECB source, noting that the March meeting was over-interpreted and the central bank now remains wary of making further changes to its policy message next month, continues to undermine the Euro.

Next on tap for the major remains the German CPI data due to be reported in mid-Europe, while the US docket offers the final GDP and jobless claims data alongside a speech from the FOMC member Kaplan.

EUR/USD Technical Levels   

Valeria Bednarik, Chief Analyst at FXStreet explains, “The 4 hours chart for the EUR/USD pair shows that the price settled well below the 1.0820 critical region, where the 20 SMA is slowly turning lower. In the same chart, technical indicators have pared loses near oversold readings, but are far from indicating a bounce, all of which maintains the risk towards the downside. Nevertheless, the pair has a strong support around 1.0735, and a stronger one at 1.0700, with a break below this last required to confirm additional declines that can extend down to the 1.0590 during the upcoming sessions. Support levels: 1.0735 1.0700 1.0660 Resistance levels: 1.0780 1.0825 1.0860.”