EUR/USD off-lows, re-takes 1.0875 ahead of US data

Having failed several attempts to surpass stiff resistances located just ahead of 1.0870 levels, the EUR/USD pair retreated in the European session, now making minor-recovery attempts from daily lows struck at 1.0856 in the last hour.

EUR/USD rejected near 5-DMA at 1.0878

The US dollar stalled its corrective slide and jumped back on the bids against its main competitors, exerting renewed selling pressure on the spot. The USD index turns positive to trade around 99.55 levels, having bounced-off a dip to 99.44.

The greenback picked-up strength versus the shared currency, as markets prefer to hold the US currency ahead of the crucial US CPI and retail sales figures, given that yesterday’s PPI and jobs data surpassed expectation.

However, the downside appears capped amid weaker treasury yields and lack-luster performance on the European indices. More so, optimistic remarks from the ECB policymaker Lane also lends some support to the Euro.

All eyes now remain on the US dataflow for fresh direction on the major. In the meantime, the prices will be driven by the broader market sentiment and USD dynamics.

EUR/USD Technical Levels

Slobodan Drvenica at Windsor Brokers Ltd notes, “the pair needs to break above 10SMA (currently at 1.0906) to signal stronger recovery and sideline existing downside risk.
Otherwise, fresh attempts lower could be expected after consolidation, with extension below 200SMA (1.0824) to threaten of filling the gap of 24 Apr and open way for further downside. The pair on track for weekly close in red and forming weekly bearish engulfing pattern that is seen as strong bearish signal. Res: 1.0870; 1.0892; 1.0906; 1.0932 Sup: 1.0852; 1.0838; 1.0824; 1.0794.”