EUR/USD surrenders gains, back near 1.0660

After climbing as high as the area of 1.0680 during overnight trade, EUR/USD has now given away part of those gains and has retreated to the 1.0665/60 band.

EUR/USD focus on US ISM, Fedspeak

The pair is so far reverting four consecutive pullbacks, as the sentiment around the greenback seems to be faltering following last week’s sharp rebound of the US Dollar Index (DXY).

Spot managed to clinch fresh yearly tops above the 1.0900 handle at the beginning of last week in response to the House Republican vote on ‘Trumpcare’, although the optimism around EUR quickly fizzled out, sparking quite a sharp drop that found some support around the mid-1.0600s for the time being.

On the positioining side, EUR speculative net shorts continued to retreat during the week ended on March 28, this time to levels last seen in mid-May 2014, as per the latest CFTC report.

In the data space, today’s final March PMI in Euroland left no room for surprises, while all the attention should be on the ISM Manufacturing and scheduled Fedspeak later in the NA session.

EUR/USD levels to watch

At the moment the pair is gaining 0.15% at 1.0671 and a break above 1.0681 (high Apr.3) would target 1.0711 (20-day sma) en route to 1.0772 (high Mar.30). On the other hand, the immediate support aligns at 1.0649 (low Mar.31) followed by 1.0625 (100-day sma) and finally 1.0597 (low Mar.14).