FXStreet (Mumbai) – The EUR bulls are finding it difficult to extend the EUR/USD recovery beyond 5-DMA located at 1.0589 after the European stocks jumped at open.
EUR/USD supported by USD weakness
Currently, the EUR/USD pair trades 0.12% higher at 1.0579, having failed to surpass 1.0595-98 region on several occasions. The main currency pair ran through fresh sellers last minutes after the positive start on the European indices, curbed the demand for the funding currency in the euro. The German benchmark, the DAX gains 0.16% while the UK FTSE jumps 0.64% while the pan-European benchmark.
However, the recovery mode remains intact as the US dollar extends its weakness against its major competitors in the European session, correcting heavy gains seen over the past few trading sessions. The USD index loses -0.15% to 100.13, retreating from multi-month highs printed at 100.35 on Monday.
Meanwhile, markets now await a flurry from economic data from the Eurozone due out shortly for fresh incentives on the pair while the ISM manufacturing report from the US will be closely monitored heading into Friday’s NFP.
EUR/USD Technical Levels
The pair remains capped by 1.06 handle, with the immediate support seen at 1.0558 (Nov 30 Low). Selling pressure will intensify below the last, dragging the pair towards 1.0519 (April Low). While to the upside the next hurdle in sight is located at 1.0612 (10-DMA) and from there to 1.0668 (20-DMA).
(Market News Provided by FXstreet)