EUR/USD struggling near 1.0650, Dollar firmer

EUR/USD remains entrenched in the negative ground at the end of the week, fading part of its earlier gains and hovering over the mid-1.0600s.

EUR/USD gains capped near 1.0680

Spot keeps the trade in the lower bound of today’s 40-pip range for the time being, as the sentiment towards the greenback seems to have regained some traction following the recent sell off post-Yellen’s testimonies.

In fact, market participants seem to have turned the attention back to the buck after the US Dollar Index (DXY) met decent support in the mid-100.00s, closer to the 20-day sma, and in light of rising expectations of a Fed’s rate hike at the March meeting.

In addition, headlines from Greece and developments from the upcoming French election appear as potential sources of volatility for the single currency in the next weeks.

Earlier in the day, ECB’s Council Member P.Lane said the central bank should remain open to further rate cuts. EUR, however, remained apathetic after the comments.

EUR/USD levels to watch

At the moment the pair is losing 0.24% at 1.0648 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).