EUR/USD rebounds to test 1.0700 ahead of US GDP

The euro staged a solid comeback against its American counterpart in the European session, sending EUR/USD back on the bids in a bid to regain 1.07 handle.

EUR/USD: Will sustain the recovery ahead of US data?

Currently, the spot now jumps +0.18% to fresh daily highs of 1.0699 at 1.0670, awaiting a decisive break above 1.07 barrier. The main currency pair stalled its downslide near 1.0660 region and from there took a sharp U-turn, recovering as much as 40-pips amid broad based US dollar sell-off, as the US treasury yields pared gains.

Moreover, negative performance on the European stock markets boosted the funding currency euro, in turn aiding the recovery in EUR/USD. The European equities drop -0.30% to -0.60%. All eyes now remain on the US GDP report due later in NA session, which is expected to show that the US economy grew steadily in Q4 2016, albeit at a slower pace than in Q3.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0724/34 (5 & 100-DMA). A break beyond the last, doors will open for a test of 1.0750 (psychological levels) and from there to 1.0773 (7-week high). On the flip side, the immediate support is placed at 1.0645 (20-DMA) below which 1.0600 (key support) and 1.0573 (50-DMA) could be tested.