EUR/USD extends the Asian recovery, 1.06 – a whisker away

The ongoing recovery in the EUR/USD pair gained further traction in the European morning, sending the rate higher to test 10-DMA barrier located at 1.0589, before easing slightly to now trade near 1.0570 region.

EUR/USD eyes US GDP, Trump

The EUR/USD pair is on a steady recovery path as we head into early European trading, looking to regain 1.06 handle amid minor-weakness seen around the greenback across the board, as the USD bulls take a breather after having staged a solid comeback, following Trump’s comments on his fiscal spending plans.

Meanwhile, markets also close pay close attention to the latest opinion polls surrounding the French elections, with the latest one showing Macron in the lead, could offer some support to the EUR bulls.

Nothing of relevance for the major in the European session, and hence, focus remains on the US President Trump’s interview and US prelim GDP data due ahead of the US open, while Trump’s address before the congress in the American evening will also hog the limelight, as investors will look for some clarity on his key policy agenda.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0633 (5-day highs). A break beyond the last, doors will open for a test of 1.0638 (50-DMA) and from there to 1.0682 (Feb 16 high). On the flip side, the immediate support is placed at 1.0520 (Jan 6 low) below which 1.0500 (psychological levels) and 1.0478 (Jan 5 low) could be tested.