EUR/USD edges lower to 1.06 on USD strength

The EUR/USD pair is erasing its meager daily gains during the NA session as the greenback is gathering some strength. However, this recent move seems to be a mere technical fluctuation as the pair remains stuck in a 30-pip trading range on Wednesday. At the moment, the pair is flat on the day at 1.0604.

The pair has not been able to move away from the 1.06 area in the past two days. Investors don't seem to be willing to commit to Euro before the elections in France take place on April 23. On the other hand, the geopolitical concerns keep the demand for the greenback weak as safer assets such as the Treasury bonds and Gold are being favored. After falling to 100.45 during the NA session, the US Dollar Index recovered back to 100.60 and is losing 0.03%. 

• France: Less than two weeks to go – Standard Chartered

The next catalyst that could potentially push the pair out of its recent trading channel could come on Friday when the CPI and Retail Sales figures from the United States are released. Until then, the pair could find it hard to make a determined move in either direction.

Technical outlook

The initial hurdle for the pair aligns at 1.0630 (100-DMA/daily high) followed by 1.0700/05 (psychological level/20-DMA) and 1.0815 (200-DMA). On the flip side, supports could be seen at 1.0570 (Monday's low/monthly low), 1.0455 (Jan. 11 low) and finally 1.0390 (Jan. 4 low).

• EUR/USD bearish near-term – Scotiabank