EUR/USD trims gains, drops back near 5-DMA

The renewed uptick in EUR/USD ran into 10-DMA resistance located at 1.0615, as sellers keep lurking on every attempt to the topside, now pushing the rate back below 5-DMA at 1.0593.

EUR/USD eases-off as USD recovers                                                                

Currently, EUR/USD trades +0.30% higher at 1.0586, having failed to survive above 1.06 handle once again. The recovery momentum in the main currency pair is seen losing steam last hour, as the US dollar stalls its corrective slide and jumps back on the bids against its main rivals, making another attempt towards 102.00.

A minor-recovery seen in the greenback across the board is mainly driven by renewed buying interest witnessed in the shorter duration treasury yields, the 2-year one. The 2-year yields on the T-notes, which mimic near-term interest rates expectations, regain poise and rally +2.50% to 1.163%. This reflects that markets are already pricing-in a Dec Fed rate hike, as also faster pace of rate hike in year ahead.

As for today’s trade in running, the USD dynamics continue to drive markets amid a data-light European calendar. Next of note for the major now remains the US goods trade balance and flash services PMI report, although virtually no major impact is expected on the major following the data release.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0615 (daily high/ 10-DMA). A break beyond the last, doors will open for a test of 1.0629 (daily R2) and from there to 1.0647 (Nov 23 high). On the flip side, the immediate support is placed at 1.0518 (multi-month low) below which 1.0500 (zero figure) and 1.0456 (March 2015 low) could be tested.

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