EUR/USD eases lower towards 100-DMA as USD recovers

The EUR/USD pair accelerated its correction downside towards the 100-DMA as the greenback started to rally in the NA session. The pair is still up 0.3% on the day, trading at 1.0645 at the moment.

After moving sideways around the 100 handle for the past couple of hours, the US Dollar Index started to erase its daily losses as the rising U.S. Treasury yields created some demand for the greenback. At the moment, the index is still down 0.3% at 100.15 while the 10-year U.S. Treasury bond yield is up 1% around 2.5%.

Until the consumer inflation change is released from the euro area on Wednesday, the greenback could continue to dominate the pair's movements as the economic calendar seems free of any potentially market-moving data or event. In the meantime, the investors could remain cautious when approaching the euro as the French presidential election nears. 

Technical outlook

A break below 1.0635 (100-DMA) could allow the pair to edge lower towards 1.0600 (psychological level) and 1.0570 (Apr. 10 low). On the upside, 1.0675 (20-DMA) could be seen as the first resistance followed by 1.0765 (Mar. 30 high) and 1.0810 (200-DMA). 

• EUR/USD appears supported around 1.06 – BBH