EUR/USD holds above 1.07 handle ahead of US data

The greenback selling pressure seems to have abated for the time being, with the EUR/USD major retracing from 5-weel tops near mid-1.0700s.

A goodish recovery in the US treasury bond yields helped the buck to reverse part of previous session's steep slide led by perceived less hawkish Fed monetary policy outlook. In fact, the key US Dollar Index has managed to bounce off one-month lows and prompted some profit taking move around the major. 

Spot prices fell to 1.0700 neighborhood before retracing few pips to currently trade around 1.0720-25 region after the final Euro-zone CPI print matched original estimates and came-in to show y-o-y rise of 2.0% during February. 

Investors on Thursday will remain focused on the BoE monetary policy decision, due in a short while from now, and the spillover effect could provide fresh impetus for short-term traders. Later during the NA session, the US economic docket would also be looked upon to grab some trading opportunities. 

Technical levels to watch

Retracement back below the 1.0700 handle could get extended towards 1.0675-70 horizontal support, which is closely followed by 100-day SMA near 1.0660 region and 50-day SMA near 1.0635 area. 

On the upside, momentum above 1.0745 region (session peak) now seems to pave way for continuation of the pair's up-move further towards 1.0785 intermediate hurdle before the pair eventually breaks through the 1.0800 handle and head towards testing 1.0815-20 resistance area.