EUR/USD extends the rebound above 1.0800, EZ GDP eyed

The shared currency is seen extending its break above 1.08 handle versus the American dollar in the European session, now pushing EUR/USD further towards 5-DMA located at 1.0824.

EUR/USD: Eurozone GDP, ZEW in focus                                                          

Currently, EUR/USD now advances +0.68% to 1.0812, flirting with daily highs reached at 1.0817 last minutes. The main currency pair staged a solid rebound post-European open, having witnessed a brief consolidative phase around 1.0750 region in the late-Asian trades.

The recovery in the EUR/USD pair gained further traction after the retreat in the US treasury yields intensified and further fuelled a deeper sell-off in the greenback across the board. The USD index drops -0.52% to test daily lows struck at 99.48 levels, while the benchmark 10-year treasury yields drop -1.41% to 2.19% and the 2-year ones decline -0.80% to 0.980%.

Markets ignored weaker German prelim GDP report, as all eyes now remain on the Eurozone flash GDP figures, German ZEW surveys and the US retail sales data for decisive moves.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0824 (5-DMA). A break beyond the last, doors will open for a test of 1.0850 (psychological levels) and from there to 1.0911 (daily R2). On the flip side, the immediate support is placed at 1.0745 (strong support) below which 1.0709 (10-month lows) and 1.0619 (daily S2) could be tested.

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