EUR/USD bounces off lows, near 1.0630

After testing the vicinity if the 1.0690 handle, EUR/USD has sparked a rebound to the current 1.0630/35 band ahead of the opening bell in Euroland.

EUR/USD supported around the 55-day sma

Spot has managed to revert the earlier selling pressure, with the 55-day sma near 1.0600 the figure offering quite a strong barrier for sellers for the time being.

The greenback has eroded part of its initial gains vs. its G10 peers – keeping the solid pace vs. the Japanese Yen after the Abe-Trump meeting – allowing the ongoing recovery in the risk-associated universe.

In the meantime, renewed effervescence around Greece seems to have been weighing on EUR in past hours, as the Greek government and international creditors failed on Friday to clinch a deal on bailout negotiations.

On another direction, the speculative community continues to trim EUR net shorts, retreating to the lowest level since late May during the week ended on February 7, as showed by the latest CFTC report.

EUR/USD levels to watch

At the moment the pair is losing 0.07% at 1.0633 facing the next support at 1.0608 (low Feb.13) followed by 1.0587 (low Jan.19) and finally 1.0452 (low Jan.11). On the upside, a breakout of 1.0670 (high Feb.10) would target 1.0710 (20-day sma) en route to 1.0758 (100-day sma/short-term resistance line).