EUR/USD extends the retreat towards 1.0700, CPI eyed

The US dollar once regains poise and resumes its corrective mode against most majors in the European session, knocking-off EUR/USD back towards 1.07 handle.

The major failed several attempts to regain 1.0750 barrier, as the greenback found support once again near post-FOMC lows and bounced higher across the board, trying another recovery-attempt from steep losses witnessed on a less hawkish-than expected FOMC statement.

Moreover, the spot remains on the back foot as the European traders digest the news of the right-wing PVV being defeated in Netherlands as PM Mark Rutte’s conservative VVD have gained the highest support, highlighting the high political fragmentation in the Netherlands.

The immediate focus now remains on the Eurozone final CPI numbers, followed by the BOE interest rates decision, which could have a ‘rub-off’ effect on the Euro.

EUR/USD Technical Levels

Karen Jones, Analyst at Commerzbank notes, “EUR/USD near term outlook is neutral to positive above 1.0584(previous downtrend): The market should find that the previous downtrend at 1.0584 currently, should now act as support, while it does so an upside bias persists near term. We have not overcome any resistance of note, nor are we expected to. Immediately overhead lies the more important resistance circa 1.0820/29 and the market is expected to struggle here. Below 1.0584 will neutralise the chart once more.”

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