Brocker.Org: EUR/USD up-move runs out of steam near 1.0900 handle


The EUR/USD pair eroded part of its daily gains to 1.0900 neighborhood and has now retreated around 25-pips from session peak, albeit has still managed to hold in positive territory. 

Currently trading around 1.0875 region, a modest greenback recovery, primarily led by surging US treasury bond yields, seems to be only factor that could be attributed to the pair’s retracement from daily tops. In fact, the benchmark 10-yr treasury bond yields has now recovered back above the key 2.30% level and extended some support to the greenback, eventually helping the US Dollar Index to aim back towards the 99.00 handle.

Meanwhile, with the French election uncertainty out of the way, market participants now look forward to the keenly watched ECB monetary policy decision for the next leg of directional move for the major. In the meantime, any fresh political news, in the run up to the second round of French Presidential election might also influence sentiment surrounding the shared currency.

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Next on tap would be the US economic docket, featuring the release of consumer confidence index and new home sales data, which would be looked upon to grab some short-term trading opportunities. 

Technical levels to watch

Immediate support is pegged near 1.0850-40 region (200-day SMA), closely follow by support near 1.0820 level (yesterday’s low), which if broken might drag the pair below the 1.0800 handle towards testing its previous resistance, now turned support, near 1.0775 area.

On the upside, the 1.0900 handle now seems to have emerged as immediate resistance, which if conquered could lift the pair back towards multi-month tops resistance near 1.0920 area ahead of 1.0970-75 horizontal resistance.