EUR/USD flat-lined around 1.0750 ahead of German GDP

Having bottomed out just ahead of 1.07 handle in the last US session, EUR/USD attempted a minor-recovery and rose as high as 1.0770 in early Asia, before meeting fresh supply to now consolidate around 1.0750 heading into early Europe.

EUR/USD on a corrective mode                                                                       

Currently, EUR/USD now advances +0.14% to 1.0751, deflating from 1.0772 daily highs. The main currency pair stalled its minor-recovery from multi-month troughs and now treads water around the mid-point of 1.07 handle, awaiting fresh fundamental drivers from the Euroland and US for fresh impetus.

The major finds support from a downward correction in the US dollar, triggered by a retreat in the treasury yields, after the recent rally that was triggered by Trump’s presidency and its positive impact on inflation expectations as well as on increased odds of a Dec rate hike.

Markets now look forward to the German Prelim GDP data ahead of the Eurozone flash GDP figures and German ZEW surveys due out in the European session. While the US retail sales will hog the limelight during the American session.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0772 (daily high). A break beyond the last, doors will open for a test of 1.0800 (5-DMA) and from there to 1.0824 (daily R1). On the flip side, the immediate support is placed at 1.0709 (10-month lows) below which 1.0650 (key support) and 1.0619 (daily S2) could be tested.

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