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EUR/USD extends the bounce towards 100-DMA

AG Markets

The EUR/USD pair made a solid comeback from near four-week troughs, with the bulls now accelerating the upside in a bid to conquer 100-DMA located at 1.0683.

EUR/USD regains 5-DMA at 1.0654

Currently, the spot advances +0.15% to trade near fresh daily tops of 1.0658, reversing sharply from daily lows of 1.0612. The EUR/USD paused a three-day sell-off and now rebounds sharply, in response to fresh USD selling triggered by a retreat in the treasury yields as risk-on trades take a breather.

From a wider perspective, the euro is expected to remain exposed to further downside risks and markets believe any pullback in EUR/USD can be seen as a good buying opportunity, as Eurozone political tensions amid French and German elections continue to dampen the sentiment around the common currency. EUR/USD heading towards 1.0480 - Natixis

Looking ahead, we have no data releases from both continents today and hence, the major eyes Tuesday’s German prelim GDP, final CPI numbers and ZEW surveys, which will be followed by the Eurozone industrial output and US PPI data. While Yellen’s testimony before the Senate tomorrow will hog the limelight.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0683 (100-DMA). A break beyond the last, doors will open for a test of 1.0700 (10-DMA) and from there to 1.0717 (20-DMA). On the flip side, the immediate support is placed at 1.0608/02 (4-week low/ 50-DMA) below which 1.0587 (Jan 19 low) and 1.0550 (psychological levels) could be tested.

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Source: https://www.ag-markets.com/news/
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