EUR/USD: Recovery appears to lose steam just ahead of 1.0950

The Asian recovery seen in the EUR/USD pair lost legs just ahead of the mid-point of 1.09 handle, with the major now entering a brief phase of consolidation amid a risk-friendly market environment.

EUR/USD bounces-off 1.0900                                                                           

Currently, EUR/USD rises +0.28% to 1.0941, receding slightly from session highs previously posted at 1.0953. The offered tone around the US dollar versus its main competitors, on the back of profit-taking after yesterday’s sharp rebound, is seen aiding the recovery in the EUR/USD pair so far this session.

However, the bulls appear to face exhaustion and pause the renewed upbeat momentum as risk-on rally in equities weigh on the funding currency status of the euro somewhat. While markets also remain on the back foot, still assessing the economic ramifications of a Trump win on the US economy, although the persisting risk-on tone indicates a benefit of doubt given to the Trump presidency, with all eyes focused on his take on the economic reforms, especially on fiscal spending, taxation and trade policies.

Data-wise, we have a data-light EUR calendar, while the US docket offers the weekly jobless claims and FOMC member Bullard’ speech later today.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0980 (20-DMA). A break beyond the last, doors will open for a test of 1.1000 (round figure/ 5-DMA) and from there to 1.1039 (10-DMA). On the flip side, the immediate support is placed at 1.0900 (psychological levels) below which 1.0848 (multi-month low) and 1.0820 (March low) could be tested.

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