EUR/USD under pressure around 1.0620

The pick up in the greenback has prompted EUR/USD to retreat from previous daily tops and re-visit the low-1.0600s.

EUR/USD attention to PMIs, FOMC, Fedspeak

After briefly testing daily lows near 1.0600 the figure during early trade, the pair remains confined to a narrow range, with gains so far capped around the 200-hour sma near 1.0630.

In the meantime, the greenback remains steady in the 100.80 region when tracked by the US Dollar Index, a tad lower than recent tops in the 101.00 neighbourhood, all against the backdrop of supportive Fedspeak as of late, hawkish comments by Chair Yellen and positive results from US fundamentals.

Looking ahead, advanced PMIs in Euroland are due tomorrow, ahead of the German IFO and the FOMC minutes on Wednesday. The greenback is poised to stay in centre stage in light of the minutes and expected Fedspeak.

Adding to the lack of direction in EUR, speculative net shorts have increased to 3-week highs during the week ended on February 14, as shown by the latest CFTC report.

EUR/USD levels to watch

At the moment the pair is up 0.01% at 1.0616 facing the next hurdle at 1.0682 (high Feb.16) followed by 1.0688 (20-day sma) and finally 1.0706 (38.2% Fibo of the November-January drop). On the flip side, a breach of 1.0520 (low Feb.15) would target 1.0452 (low Jan.11) en route to 1.0339 (2017 low Jan.3).

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