EUR/USD fast approaching 1.0600 handle

A fresh wave of greenback buying interest seems to have emerged in the past hour, dragging the EUR/USD pair back closer to the 1.0600 handle.

Spot extended its reversal move from weekly tops, near 1.0675-80 resistance, and weakened back below 100-day SMA amid a sudden turnaround in sentiment surrounding the greenback.

In absence of any major disappointment from the US economic data front, the US Dollar's strong recovery move could be solely attributed to short-covering and seems to be only factor weighing heavily on the major. 

Today's price-action clearly suggests market anxiety ahead of the French Presidential election, which has held investors back from buying the Euro.

Looking at the broader picture, the pair is now fast approaching a critical year-to-date ascending trend-line support near the 1.0600 handle. A convincing break through this important support should pave way for continuation of the pair's rejection move from the very important 200-day SMA hurdle near the 1.0900 handle. 

Technical levels to watch

On a sustained break through 1.0600 mark, leading to a subsequent drop below 1.0570 level (Monday's monthly low), the pair is likely to accelerate the slide towards 1.0540 intermediate support before eventually dropping to the key 1.0500 psychological mark.

Meanwhile on the upside, any recovery attempts back above 1.0625 area (100-day SMA) might now confront immediate resistance near 1.0645-50 zone, above which the pair is likely to make a fresh attempt to retest 1.0675-80 resistance area.