EUR/USD flirts with 1.0800 as USD corrects, EZ data eyed

The EUR/USD pair failed to sustain the upside above 1.08 handle in the Asian session this Wednesday, and eased slightly before finding some support from risk-off market profile, sending the rate back to the last.

The EUR bulls took a breather after the latest upsurge to fresh multi-week highs near 1.0820, as the greenback attempts a minor-correction after yesterday’s selling spiral, triggered by the US equities sell-off, which spurred risk-off trades and knocked-off the treasury yields.

Moreover, the Euro remains underpinned by various opinion polls, showing Macron leading the French presidential election race. Further, technically, the spot remains on track for further upside, with an inverted head and shoulders breakout on the daily sticks.

In the day ahead, the major awaits fresh impetus for next leg higher, with persisting risk-off moods to continue supporting the funding currency EUR. Amid a data-light day, risk-trends will dominate the moves behind the EUR/USD pair. Meanwhile, the Eurozone current account and US existing home sales data will be eyed for further momentum.

EUR/USD Technical Levels   

Haresh Menghani, Analyst at FXStreet explains, “Bulls would be eyeing to clear 1.0820 resistance, above which the pair seems all set to head towards testing the very important 200-day SMA hurdle near the 1.0900 handle, ahead of 61.8% Fibonacci retracement level resistance near 1.0930 region.”

“On the downside, retracement below 1.0780-75 immediate support could get extended towards 1.0730 level en-route 38.2% Fibonacci retracement level support near 1.0700 round figure mark. Weakness below 1.0700 support could prompt additional profit taking slide towards 100-day SMA strong support near mid-1.0600s,” Haresh added.