EUR/USD side-lined near 1.0750 ahead of German data

The bulls take a breather from the recent upsurge, allowing a brief phase of consolation in the EUR/USD pair near the mid-point of 1.07 handle, as markets now await the German data for fresh impetus on the euro.

EUR/USD losing sight of 1.08 handle?                                                             

Currently, EUR/USD now drops -0.12% to 1.0751, flirting with daily lows struck at 1.0749 last minutes. The main currency pair is seen on a steady declining path from three-week highs, and now looks to extend its correction below 1.0750 levels in the European session ahead, as the greenback appears to regain momentum against its main competitors, finally bringing an end to subdued trading activity seen in Asia.

A minor-recovery in the US treasury yields across the curve and a positive close on most major Asian indices, also adds to the renewed weakness seen behind EUR/USD.

Looking ahead, increasing expectations that the ECB is likely to announce extension of its QE program beyond March 2017 tomorrow, is likely to keep the shared currency under pressure.

The immediate focus now remains on the German factory orders data due ahead of European open, while the US trade and factory orders data will be closely eyed later on Tuesday.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0798 (3-week highs). A break beyond the last, doors will open for a test of 1.0817 (Nov 15 high) and from there to 1.0850 (psychological levels). On the flip side, the immediate support is placed at 1.0700 (round number) below which 1.0683 (5-DMA) and 1.0646/39 (10 & 20-DMA) could be tested.