The EUR bulls remain relentless in Asia, bolstering the recovery from ahead of 1.10 handle well beyond Thursday’s high printed at 1.1052.
EUR/USD rallies on USD retreat
Currently, EUR/USD trades 0.37% higher at fresh session highs of 1.1065, recovering from session lows reached at 1.1016. The main currency pair remains unperturbed by the risk-on rally in the Asian indices and extends its bullish momentum largely on the back of the broad based US dollar retreat after the buck climbed higher following much stronger than expected US durable goods data (1.8% actual versus 0.2% expected).
Moreover, markets resort to profit-taking following the drop in EUR/USD to three-week lows near 1.0950 as attention now remains on the crucial US prelim GDP report due later today, which may spur huge volatility. The GDP is expected to grow a meagre 0.4% instead of the already startling 0.7% reported last month.
In the meantime, markets will look forward to the German prelim CPI and headlines from the G20 meeting for further cues on the major.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance at 1.1081/1100 (1h 200-SMA/ round number). A break beyond the last, doors will open for a test of 1.1137/40 (Feb 19 & 22 High). On the flip side, the immediate support is placed at 1.1025/22 (200-DMA/ daily low) below which at 1.0987 (50-DMA) could be tested.
(Market News Provided by FXstreet)