EUR/USD approaches session lows as USD picks up momentum
The EUR/USD pair fell to 1.0608 at the NA opening and tried to recover but couldn't sustain its momentum above 1.0630. The pair once again came in under selling pressure as the greenback gained strength against its competitors in the last couple of hours. At the moment, the pair is down 0.47% at 1.0615.
The US Dollar Index leaped to a new daily high at 100.50 after the University of Michigan consumer sentiment came in above expectations. However, the index struggled to push further as the markets thinned out amid a lack of fresh fundamental catalyst. After easing back to 100.35 area, the index is making another attempt to daily highs and is now at 100.45, up 0.39% on the day.
This recent bullish momentum is unlikely to build up as it hasn't been supported by a fundamental development nor data. In fact, the price action is expected to remain subdued until tomorrow's macro data from the United States. European markets will be closed until Tuesday due to Easter holiday. Moreover, investors are staying away from taking heavy positions before the French elections, leaving the pair mercy of the DXY.
- French election concerns will be a key driver of EU markets - Westpac
Technical outlook
After giving back most of yesterday's winnings, the pair slipped back below the significant 100-DMA level, which now aligns as the first resistance at 1.0630. A break above that level could aim for 1.0700 (psychological level/20-DMA) and 1.0815 (200-DMA). On the downside, supports are located at 1.0570 (Monday's low/monthly low), 1.0455 (Jan. 11 low) and finally 1.0390 (Jan. 4 low).
- EUR is more like a coiled spring - SocGen
