EUR/USD eases to lows near 1.0680

The single currency has faded yesterday’s spike to levels above the 1.0700 handle, prompting EUR/USD to return to the 1.0685/80 band.

EUR/USD lower on USD pick up

The bearish note around the euro remains well and sound so far this week, dragging spot to its first weekly decline after seven consecutive advances, against no other backdrop than USD dynamics.

The pair rallied and struggled ahead of the key 1.0820 area in past sessions, sparking the onging leg lower amidst a moderate pick up in the demand for the US Dollar, which is looking to consolidate the recent breakout of the critical 100.00 handle when tracked by the US Dollar Index (DXY).

Data wise in Euroland, German trade balance figures are due later in the session, while Initial Claims and speeches by St. Louis Fed J.Bullard (2019 voter, neutral) and Chicago Fed C.Evans (voter, dovish) are expected across the pond.

EUR/USD levels to watch

At the moment the pair is losing 0.15% at 1.0682 facing the next support at 1.0638 (low Feb.8) followed by 1.0617 (low Jan.30) and finally 1.0606 (55-day sma). On the upside, a breakout of 1.0715 (high Feb.8) would target 1.0770 (100-day sma) en route to 1.0829 (high Feb.2).