EUR/USD bounces-off 1.0600, back to square one

The shared currency found fresh bids just ahead of 1.06 handle, now lifting the EUR/USD pair back towards the familiar ranges near 1.0630 region.

EUR/USD rise back above 5-DMA at 1.0611                                                    

Currently, EUR/USD trades modestly flat at 1.0632, revering a downward spike to session lows struck at 1.0604 in the last hour. The main currency pair jumped back into bids as the greenback faded a spike to daily highs against its major peers after the treasury yields stalled recovery and fell further into losses. Meanwhile, the US dollar index deflated from 101.16 highs to now trade around 100.86, down -08% on the day.

The EUR/USD pair reverted to the levels seen in early Europe, although the recovery appears to lack momentum as positive European equities dampen the demand for euro as a funding currency.

The major continues to get influenced by the USD dynamics, as the bulls await fresh impetus from the upcoming Eurozone consumer confidence data and US existing home sales report for further momentum.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0650 (psychological levels/ daily high). A break beyond the last, doors will open for a test of 1.0685 (10-DMA) and from there to 1.0700 (round figure). On the flip side, the immediate support is placed at 1.0600 (round number) below which 1.0567 (multi-month low) and 1.0556 (Nov 2015 low) could be tested.