EUR/USD attempts a tepid-bounce from new 11-month lows

The shared currency is seen making minor-recovery attempts against its American peer in the European session, lifting EUR/USD from fresh multi-month lows struck just shy of 1.07 handle.

EUR/USD: US data eyed                                                                                    

Currently, EUR/USD now drops -0.07% to 1.0715, recovering slightly from new eleven-month lows posted at 1.0701 some minutes ago. The main currency pair broke its consolidative phase around the mid-point of 1.07 handle to the downside post-European open and hit fresh 2016 lows after the greenback regained poise and jumped back on the bids versus its main competitors, tracking a solid rebound in the US treasury yields.

 The US treasury yields are on a roll higher as markets believe Trump’s fiscal sending plans will stimulate demand and drive inflation higher. While rising Dec Fed rate hike chances also bolster the T-yields, with the 2-year yields sitting at the highest levels since April. Meanwhile, the USD index retreats from fresh multi-month tops to now trade around 100.20 levels, almost unchanged for the day.

Markets digest the latest speech from FOMC member Bullard, as all eyes remain on the US economic releases, including the US PPI data, which will be released in the NA session.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0777 (5-DMA). A break beyond the last, doors will open for a test of 1.0800 (round figure) and from there to 1.0850 (psychological levels). On the flip side, the immediate support is placed at 1.0701 (11-month lows) below which 1.0642 (daily S2) and 1.0600 (zero figure) could be tested.

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