EUR/USD: Bearish grip intact near 1.0600, Sentix eyed

The EUR/USD pair looks frozen near 1.06 handle in early Europe, with the bears gearing up for a decisive break lower towards next support located near 1.0580 region, where 5 & 10-DMA intersect.

The spot keeps losses amid resurgence of recent bullish momentum seen behind the greenback versus its main peers, as a March Fed rate hike looks very much likely given last Friday’s Yellen’s hawkish remarks.

The Fed Chair noted, “At our meeting later this month, the committee will evaluate whether employment and inflation are continuing to evolve in line with our expectations, in which case a further adjustment of the federal funds rate would likely be appropriate.” 

Moreover, the Euro also remains vulnerable amid latest comments from a Swiss central banker, Marcel Zimmerman, citing that Marine Le Pen’s victory in the French elections appears more likely and markets are already prepared for the same.

Markets now look forward to the Eurozone retail PMI and Sentix investors’ confidence data for fresh cues on the EUR, while the major is expected to remain undermined as divergent monetary policy outlooks between both continents comes back to the fore.

EUR/USD Technical Levels

Mohammed Isah at FXTechstrategy noted, “The pair saw a price rejection the past week, leaving risk higher in the new week. On the upside, resistance comes in at 1.0650 level with a cut through here opening the door for more upside towards the 1.0700 level. Further up, resistance lies at the 1.0750 level where a break will expose the 1.0800 level. Conversely, support lies at the 1.0600 level where a violation will aim at the 1.0550 level. A break of here will aim at the 1.0500 level. All in all, EURUSD faces further downside pressure medium term but faces recovery higher.”