EUR/USD bounces off lows near 1.1120

The better tone around the greenback has prompted EUR/USD to fade part of the recent strong rebound and recede towards the 1.1130/20 band, or daily lows.

EUR/USD focus on ECB-speak, US data

After gaining more than 3% from last week’s lows near 1.0840 to today’s fresh 2017 tops just above 1.1170, the pair is seeing some correction as sellers seem to have stepped in and are currently cashing up part of those gains.

In addition, the greenback – tracked by the US Dollar Index – found some dip buyers around YTD lows near 97.30 and is currently testing the upper bound of the daily range amidst some tepid recovery.

EUR should stay in centre stage along the day in light of speeches by ECB’s Weidmann, Mersch, Nowotny, Lautenschlaeger and Draghi. Across the pond, Initial Claims are due followed by the regional manufacturing gauge by the Philly Fed and the speech by Cleveland Fed L.Mester (2018 voter, hawkish).

EUR/USD levels to watch

At the moment, the pair is retreating 0.21% at 1.1136 and a break below 1.1073 (76.4% Fibo of 1.1300-1.0339) would target 1.0935 (20-day sma) en route to 1.0826 (200-day sma). On the flip side, the next hurdle aligns at 1.1172 (2017 high May 18) followed by 1.1200 (psychological handle ) and finally 1.1300 (high Nov.9 2016).