EUR/USD consolidates earnings, still above 1.09

After refreshing its five-month high at 1.0950, the EUR/USD pair started to consolidate its daily earnings during the NA session as the US Dollar Index began a recovery move. At the moment, the pair is trading at 1.0925, up 0.55% on the day.

The economic calendar has been quiet and there were no fundamental catalysts seen behind the USD recovery. The upsurge could be considered to be a technical correction triggered by short coverings. Following a drop to 99.57 (five-month low), the index is now at 98.70, still down 0.2% on the day.

The greenback may have also received some demand after an article by The Wall Street Journal revealed some details regarding Trump's new tax plan, which is supposed to be announced tomorrow. 

• U.S. President Trump reportedly to proposing to slash the tax rate on pass-through companies to 15% - WSJ

Tomorrow's economic calendar doesn't offer any data that could potentially impact the price action and investors could continue to react to news surrounding the second round of French elections. The highlight of the week will be Thursday's ECB monetary policy meeting.

• EUR/USD: awaits a dovish ECB - Scotiabank

Technical levels to watch

With a decisive break below 1.09 (psychological level), the pair could extend its correction towards 1.0820 (Monday's low) and 1.0785 (200-DMA). On the flip side, resistances align at 1.0925 (daily high), 1.10 (psychological level) and 1.1065 (Nov. 8 high).