EUR/USD trimmed gains, still above 1.0600

The single currency has faded the earlier bull run to the 1.0660 area on Tuesday, with EUR/USD coming back to the 1.0630 region ahead of the NA open.

EUR/USD focus on US data

The pair has eroded initial gains and is now flirting with the negative territory in the 1.0630/25 band following a pick up in the demand for the greenback.

In fact, the buck - in terms of the US Dollar Index - has recovered from earlier lows and is now testing once again the 101.00 handle ahead of results from US Existing Home Sales and the Richmond Manufacturing Index.

Gains in spot remain limited by the tough resistance area in the mid-1.0600s for the time being, while the 1.0820/50 band remains a more significant hurdle in the broader scenario.

Data wise in Euroland, the European Commission will publish its advanced Consumer Confidence gauge for the current month later in the session, with consensus seeing a small improvement.

Coincident with the recovery in the single currency, EUR speculative net shorts have retreated to 4-week lows during the week ended on November 30, as shown by the latest CFTC report.

EUR/USD levels to watch

The pair is now losing 0.08% at 1.0622 and a break below 1.0567 (2016 low Nov.18) would aim for 1.0538 (low Dec.3 2015) and then 1.0519 (low Apr.13 2015). On the other hand, the initial resistance aligns at 1.0652 (high Nov.21) followed by 1.0763 (high Nov.16) and finally 1.0826 (high Nov.14).

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