EUR/USD retraces to 1.0860

FXStreet (Mumbai) - EUR/USD held on to gains during the European session, although failed to sustain near session highs, despite persistent weakness seen in the US dollar as traders now await EMU retails sales data due out shortly.

EUR/USD drops from 1.0881

The EUR/USD trades higher by 0.40% at 1.0858 levels, retreating from fresh session highs posted around 1.0881 levels. EUR/USD strives for 1.09 as the shared currency fails every attempt to 1.09 barrier versus the US dollar. The latest downbeat German factory orders data weighs on the euro, keeping a lid on the upside.

EUR/USD also garners support from the greenback weakness against its major competitors as the USD remains heavily sold-off in anticipation of dovish FOMC minutes to be released later in the day.

Meanwhile, traders await EMU retail sales numbers in order to confirm that the ECB QE and lower oil prices are indeed having positive impact on the European economies. Also, Greece scenario and FOMC minutes will be closely watched for further momentum on the main currency pair.

EUR/USD Technical Levels

The pair has an immediate resistance at 1.0900 levels, above which gains could be extended to 1.0957 (April 7 High) levels. On the flip side, support is seen at 1.0821 (Today’s Low) below which it could extend losses to 1.0800 levels.

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