EUR/USD: recovery finds resistance at 1.0655

The Euro managed to move off daily lows against the US dollar during the American session. The greenback weakened in the market and pulled back. 

EUR/USD bottomed at 1.0607, the lowest since January 19. From the lows, it started to recover. The upside hit resistance around 1.0650. Currently, the pair trades at 1.0635, down less than 25 pips for the day, headed toward the second decline in a row. 

On a weekly basis, the pair is having the worst decline since early November. The decline represents a sharp retreat after rising constantly since December. 

While the euro remain weak in the market amid political uncertainty, the US dollar gained momentum yesterday, resuming, at least for a while, the “Trump trade”. Currently, US President Trump is speaking to the press Japan PM Shinzo Abe. 

Levels to watch

To the upside, resistance levels might be located 1.0650, 1.0665 (downtrend line) and 1.0705/10 (Feb 09 high). On the flip side, support is seen at 1.0605/10 (daily low), 1.0585 (Jan 19 low) and 1.0550/55 (Jan 10 low).