EUR/USD Bears take a breather, stays above 1.0800

The EUR/USD pair has entered a phase of downside consolidation so far this session, clinging to the 1.08 handle, as the bears take a breather after the overnight sell-off.

The major remains better bid and manages to keep 1.08 handle, largely underpinned by cross-driven strength. Strong gains seen in EUR/GBP in the wake of the GBP sell-off amid Brexit concerns, as investors gear up for the historic Article 50 triggering during London hours.

More so, mixed tone seen in the Asian indices combined with stalled USD buying helps keep the sentiment around EUR/USD buoyed somewhat.

The spot witnessed aggressive selling in the last US session, following the release of better-than expected US macro data and on hawkish comments from Fed officials Kaplan and Evans, which triggered a sharp USD rally across the board.

Later today, all eyes will remain on the Article 50 trigger by the UK PM May amid a light economic calendar, with the only US pending home sales and FOMC member Evans speech on tap.

EUR/USD Technical Levels   

Valeria Bednarik, Chief Analyst at FXStreet explains, “The 4 hours chart shows that the price is breaking below a bullish 20 SMA, which reinforces the Fibonacci resistance area, whilst technical indicators have retreated from near overbought readings, maintaining bearish slopes and entering bearish territory. Below 1.0790 the corrective movement can extend down to 1.0735,  while back above 1.0830, the pair has scope to extend its gains up to 1.0930, this last the 61.8% retracement of the post-US election's decline. Support levels: 1.0780 1.0735 1.0700 Resistance levels: 1.0830 1.0870 1.0905.”