EUR/USD eases-off 1.0750 as treasury yields recover

Having peaked at five-week highs near 1.0750, the EUR/USD pair extends its retreat towards the late-Asian trades, as the US dollar recovers a small portion of post-FOMC losses in sync with the treasury yields.

The greenback takes on a minor-corrective mode against its main competitors, as the bears take a breather after the recent sell-off triggered by a neutral Fed decision. The US treasury yields across the curve also attempt a minor-bounce amid a slightly better risk environment.

Moreover, the euro fails to benefit from a clear pro-Europe outcome of the Dutch elections, with Dutch PM Rutte's VVD party taking the lead to form a new cabinet a votes continue begin counted.

In the day ahead, the EUR/USD pair may extend its corrective slide as the greenback may continue to recover ground on the back of profit-taking, as investors gear up for the next key central banking events, the SNB and BOE policy decisions.

Data-wise, the major could also get influenced by a fresh batch of US economic releases due later in the NA session, which includes the US housing data, Philly Fed manufacturing gauge, unemployment claims and JOLTS job openings data.

EUR/USD Technical Levels   

Valeria Bednarik, Chief Analyst at FXStreet noted, “the risk is clearly towards the upside, given that in the 4 hours chart, the price has recovered above all of its moving averages, whilst technical indicators head sharply lower after surpassing their mid-lines, maintaining strong upward slopes and with the RSI indicator approaching overbought territory.”

“If the price manages to hold above 1.0720, there's room for an extension up to 1.0820, the 50% retracement of the post-US election slide,” Valeria added.