EUR/USD bounces-back towards 1.0730 amid fresh USD selling

Fresh bids emerged for EUR/USD just ahead of 1.07 handle, allowing a tepid-bounce over the last hour, as the bulls eye a retest of three-week tops reached previously at 1.0737.

The spot found support from fresh selling seen in the US dollar against its main competitors, with the USD index retreating from 99.65 levels to now trade near 99.50.

Moreover, in–line with expectations Eurozone final CPI data combined with solid monthly core CPI figures also help cushion the losses in EUR/USD.

However, it remains to be seen how long the spot can sustain the recovery, as a sharp rebound seen in the US yields alongside positive European equities will weigh on the funding currency status of the Euro.

Next of note for the major remains the Fed Beige book due to be reported in the American afternoon. In the meantime, latest opinion poll outcomes and USD dynamics will remain the key drivers behind EUR/USD price-action.

EUR/USD Technical Levels

Technical resistances for the pair are aligned at 1.0737 (3-week high), 1.0781 (200-DMA) and finally 1.0800 (round number). On the flip side, the spot finds next support at 1.0702/00 (Daily pivot/ round number), a break below that level could open the door to 1.0663/60/59 (5, 20 & 50-DMA) and 1.0600 (classic S2/ Fib S3).