EUR/USD off-lows, but remains capped below 5-DMA

EUR/USD found support near NY lows and now makes another attempt to regain 5-DMA as the US dollar extends its corrective slide versus its main competitors in early Europe.

EUR/USD: 1.0600 back on sight?                                                                      

Currently, EUR/USD trades +0.21% higher at 1.0575, flirting with daily tops posted previously at 1.0578. The main currency pair is seen consolidating the Asian recovery, with the bulls finding respite from a broad based retreat in the US dollar, in response to stalled buying in the treasury yields.

On Thursday, the EUR/USD pair staged a solid rebound from the lowest levels since March 2015 reached just ahead of 1.05 handle, and rallied as high as 1.0587 levels, before giving up half the gains to settle the day almost unchanged at 1.0554.

Looking ahead, light trading is expected to extend on Friday as most US traders still continue to enjoy Thanksgiving celebrations, with the US bond markets open half-day. Meanwhile, the major awaits the US economic data due later in the NA session for fresh incentives.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0589 (daily pivot/ 5-DMA). A break beyond the last, doors will open for a test of 1.0629 (daily R2) and from there to 1.0647 (Nov 23 high). On the flip side, the immediate support is placed at 1.0518 (multi-month low) below which 1.0500 (zero figure) and 1.0456 (March 2015 low) could be tested.

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