EUR/USD clings to gains near session tops, around mid-1.0600s

The greenback maintained its offered tone, helping the EUR/USD pair to hold on to daily gains closer to session peak near mid-1.0600s.

After a lackluster start, the pair gained some fresh traction and once again managed to defend the 1.0600 important support amid broad based greenback weakness, against the backdrop of disappointing US macro data. 

   •  EUR/USD appears supported around 1.06 – BBH

In the latest US economic data, released on Monday, the Empire State Manufacturing Index retreated sharply from previous month's 16.4 and plunged to 5.2 for April, also falling short of consensus estimates and dragged the key US Dollar Index back closer to the key 100.00 psychological mark. 

   •  NY Fed: Headline general business conditions index fell eleven points to 5.2

Adding to this, rising geopolitical worries over North Korea further supported the Euro's funding currency status and collaborated to the bid tone surrounding the major. 

However, heading into this week's key event risk, the French Presidential elections, investors might be reluctant to carry big positions, which might eventually cap any further upside for the pair, at least for the time being.

Technical levels to watch

On a sustained momentum above mid-1.0600s, the pair is likely to head back towards 1.0675-80 resistance area ahead of the 1.0700 handle. On the downside, retracement back below 1.0630-25 region might continue to find support at the 1.0600 handle ahead of 1.0570 level (one-month low touched last week).