EUR/USD struggle with 5-DMA continues amid positive equities

The bulls were rescued by fresh support once again just ahead of 1.06 handle, sending the EUR/USD pair back to test the upside barrier located at 5-DMA (1.0627).

EUR/USD clings to 1.0600

Currently, the spot peeks into the green zone near 1.0620, extending its side-trend into the European session, with sentiment divided between weaker treasury yields and firmer European equities.

However, subdued trading activity seen around the greenback versus its main competitors lends support to EUR/USD somewhat. While the EUR traders cheer upbeat German PPI data, which arrived at +0.7% m/m versus +0.3% expectations.

Markets now eagerly await Germany’s Bundesbank monthly economic report for fresh incentives, in absence of significant economic events and amid slowing volumes as the US markets remain on a holiday today.  

EUR/USD rallies should struggle near 1.0730 – Commerzbank

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0627/33 (5-DMA/ daily high). A break beyond the last, doors will open for a test of 1.0666 (100-DMA) and from there to 1.0683 (20-DMA). On the flip side, the immediate support is placed at 1.0582 (daily S3) below which 1.0520 (Jan 6 low) and 1.0500 (psychological levels) could be tested.