EUR/USD fails above 1.0600, revisits daily lows

A failure to sustain the upside above 1.06 handle, makes EUR/USD more vulnerable in wake of a solid recovery seen in the US dollar across the board.

EUR/USD heading towards 5-DMA support at 1.0567

Currently, the spot trims gains to trade near session lows posted previously near 1.0585 region, after having failed several attempts to take on the recovery well beyond 1.0600 levels.

The latest leg down in the EUR/USD pair can be mainly attributed to resurgent USD demand, as the US treasury yields turn positive across the curve. Moreover, a recovery seen in the European equities also weighs somewhat on the funding currency euro.

Meanwhile, the major also stands resilient to cross-driven strength, especially with EUR/GBP marching higher on broad GBP weakness. Attention now turns towards the US JOLTS job openings data and wholesale inventories lined up for release later in the NA session.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0627 (1-week high). A break beyond the last, doors will open for a test of 1.0654 (Dec 30 high) and from there to 1.0700 (round figure). On the flip side, the immediate support is placed at 1.0567 (5-DMA) below which 1.0525 (10-DMA) and 1.0481 (20-DMA) could be tested.