EUR/USD: Supply capping minor-recovery at 20-DMA

The recovery in the EUR/USD pair lost steam at 20-DMA, sending the rate back in the red towards 1.06 handle.

EUR/USD hits daily highs, then retreats                                                         

Currently, EUR/USD turns negative near 1.0612, flirting fresh session lows struck at 1.0608 few minutes ago. The main currency pair came under fresh selling pressure after the European bells, with the European traders resorting to fresh round of euro selling in wake of a dovish taper move announced by the ECB a day before.

Further, fresh buying interest seen around the US dollar versus its main competitors also collaborated to the latest leg lower in the major. However, the retreat remains restricted amid negative European equities, which keeps the sentiment buoyed around the funding currency euro.

Next on tap for the major remains the US consumer sentiment data due on the cards in the NA session, while all eyes now turn towards the much-awaited Fed event scheduled next week.  

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0629 (daily high/ 20-DMA). A break beyond the last, doors will open for a test of 1.0661 (10-DMA) and from there to 1.0693 (5-DMA). On the flip side, the immediate support is placed at 1.0589 (4-day low) below which 1.0551 (Nov 30 low) and 1.0515 (Nov 24 low) could be tested.