EUR/USD upside lost momentum near 1.0670

The upside momentum around EUR/USD seems to have run out of legs in the 1.0675/70 band against the backdrop of a generalized lack of direction in the global markets.

EUR/USD gains capped be 20-day sma

After two consecutive advances, the pair now seems to face some difficulty to clear the upper-1.0600s, where sit the 20-day sma (1.0699) and the retracement of the November-January drop (1.0706), all amidst some so far mild pick up in the demand for the greenback.

On the USD-side, the recent sharp decline appears mitigated after investors have quickly reverted the Yellen-led rally earlier this week, dragging at the same time the US Dollar Index back to the mid-100.00s after surpassing 101.70 on Wednesday.

Absent releases in the euro area and the US economy today, the broader risk appetite trends emerge to be the main driver for the pair’s price action in the very short term. However, headlines from Greece and developments regarding the upcoming elections in France could also carry the potential to add some much-needed volatility to the markets.

EUR/USD levels to watch

At the moment the pair is losing 0.13% at 1.0660 and a break below 1.0520 (low Feb.15) would target 1.0452 (low Jan.11) en route to 1.0339 (2017 low Jan.3). On the flip side, the next hurdle aligns at 1.0682 (high Feb.13) followed by 1.0699 (20-day sma) and finally 1.0706 (38.2% Fibo of the November-January drop).

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