EUR/USD defend 1.0600 mark, turns positive ahead of US data and FOMC minutes

Having posted a session low at 1.0600 handle, the EUR/USD pair managed to recover its lost ground and is now heading back towards daily peak.

Currently trading around 1.0630-35 band, the pair caught fresh buying interest at lower levels amid broad based greenback retracement and thin market liquidity ahead of Thanksgiving holiday on Thursday in the US.

During early European session, the pair failed to benefit from upbeat release of composite Euro-zone manufacturing and services PMI print and dropped to touch a session low level near 1.0600 mark. As the day progressed, the overall US Dollar Index turned flat as market players now look forward to FOMC meeting minutes, later during NY trading session, for further clarity over the Fed's near-term economic and monetary policy outlook.

Today's US economic docket also features the release of durable goods orders, weekly jobless claims, new home sales, and revised UoM consumer sentiment index, which could also provide trading opportunities for short-term traders. 

Technical levels to watch

From current levels, immediate resistance is pegged at 1.0665 level above which the pair is likely to aim to surpass 1.0700 handle and head towards testing 1.0735-40 horizontal resistance. On the downside, 1.0600 handle remains immediate strong support, which if broken decisively could accelerate the slide towards 1.0570 support (last week's 11-month low) before the pair eventually drops to December 2015 lows support near 1.0520 region.

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