EUR/USD: Bears loosen grip, re-takes 1.0800 ahead of Draghi

The bulls found fresh support once again near 1.0775 regions, allowing a minor-rebound in EUR/USD in a bid to reclaim 1.08 handle.

EUR/USD: 5-DMA back on sight?                                                                     

Currently, EUR/USD now drops -0.56% to 1.0795, reversing a brief dip to 1.0779. The EUR/USD pair extended its losing streak into a sixth day today, hitting the lowest levels since January 2016, as the US dollar remains in command across the board amid rising treasury yields, in response to Trump’s victory at the US presidential elections last week.

However, over the last hour, the euro is seen making minor-recovery attempts versus its US peer as markets look to take profits off the table after the recent sell-off, and as we head into a crucial data-heavy weak ahead. This week holds the US retail sales, PPI and CPI figures, while flash GDP, ECB minutes, final CPI etc. will be released from the Euroland.

Apart from the data, we have ECB Chief Draghi’s speech later today, while Fed Chair Yellen is due to testify about economic outlook before the Joint Economic Committee on Thursday, with markets awaiting fresh hints on the rate hike prospects, especially in light of a Trump win.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0826 (daily high). A break beyond the last, doors will open for a test of 1.0856 (5-DMA) and from there to 1.0900 (round figure). On the flip side, the immediate support is placed at 1.0750 (psychological levels) below which 1.0709 (multi-month low) and 1.0680 (key support) could be tested.

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