EUR/USD: Bulls regain poise, 1.0500 eyed?

The EUR/USD pair clings onto a fresh stretch of gains seen in the Asian session this Wednesday, and now awaits fresh impetus for the next leg higher, as holiday-thinned trading continues to dominate markets.

EUR/USD targets 1.0500

Currently, EUR/USD trades +0.15% at 1.0470, holding well above 5-DMA support of 1.0459. After a brief overnight consolidation phase, the EUR/USD pair broke to the upside and reached daily tops at 1.0475 levels, as heavy selling pressure seen in the US treasury yields across the curve weighed down on the US dollar against the main competitors. The 2-year treasury yields drop -1.33% to trade around 1.27%, while the USD index flirts with lows at 102.92, down -0.08% on the day.

The main currency pair extends its recovery from better-than expected US macro data-led dip to near 1.0440 region, and now makes headways towards 1.05 handle amid thin liquidity, which helps extend the upmove. Later today, the US pending home sales may provide fresh impetus to the USD bulls.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0486 (daily R2). A break beyond the last, doors will open for a test of 1.0500 (round figure) and from there to 1.0500 (round figure). On the flip side, the immediate support is placed at 1.0459 (5-DMA) below which 1.0439 (10-DMA) and 1.0414 (daily S2) could be tested.