EUR/USD treads water around 1.0630, awaits fresh impetus

Having faced rejection at 1.0650 at Tokyo-open, the EUR/USD pair drifted lower to now trade around a flat-line near the lower bound of 1.06 handle.

EUR/USD supported above daily pivot at 1.0619                                          

Currently, EUR/USD trades almost unchanged at 1.0630, testing fresh session lows posted last minutes at 1.0624. The main currency pair’s overnight recovery  mode from below 1.06 handle lost legs at the mid-point of the last, sending the rate back towards 5-DMA located at 1.0612, as prevalent risk-on market profile reduces demand for the funding currency euro.

While any recovery attempt remains limited in EUR/USD, as the US dollar wipes-out losses and now looks to resume its upbeat momentum across the board, tracking a minor-recovery seen in the treasury yields. While ECB Draghi’s reiteration that he is ready to implement more stimulus measures whenever required, is also likely to keep a lid on the prices.

Nothing of relevance for the major in the EUR calendar today, and therefore, markets eye the US data releases for further incentives.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0650 (psychological levels/ daily high). A break beyond the last, doors will open for a test of 1.0685 (10-DMA) and from there to 1.0700 (round figure). On the flip side, the immediate support is placed at 1.0612 (5-DMA) below which 1.0567 (multi-month low) and 1.0556 (Nov 2015 low) could be tested.

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