EUR/USD reverse course, drops to session low near 1.0650

The EUR/USD pair failed to build on overnight strong gains and has now drifted into negative territory, snapping three consecutive days of winning streak.

Spot ran through fresh offers near the 1.0675-80 immediate resistance area and retreated around 25-pips from weekly tops to currently trade around mid-1.0600s. The pair's latest leg of slide in the past hour could be attributed to a modest greenback recovery. In fact, the key US Dollar Index was seen building on to its recovering momentum back above the key 100.00 psychological mark and seems to be the only factor driving the pair's reversal during early European session. 

It, however, remains to be seen if the greenback is able to extend the ongoing recovery move or resumes with its overnight slump led by the US President Donald Trump's jawboning on stronger US currency. 

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Meanwhile, traders seemed to have largely ignored the final CPI prints from Germany and France, with the broader market sentiment surrounding the greenback being an exclusive driver of the pair's movement on Thursday.

Market participants now look forward to the release of US economic docket that include - the latest PPI print, usual weekly jobless claims and Prelim UoM Consumer Sentiment index, for short-term trading impetus. 

Technical levels to watch

A follow through retracement below 1.0650-45 area is likely to accelerate the slide towards 100-day SMA support near 1.0625 region, below which the pair seems to head back towards retesting the 1.0600 handle. 

On the upside, sustained momentum above 1.0675-80 immediate hurdle now seems to continue boosting the pair beyond the 1.0700 handle towards its next resistance near 1.0730-35 horizontal zone.