EUR/USD bounces off lows near 1.0650

The selling bias around the single currency is gathering some traction after a soft opening in the European markets, currently taking EUR/USD to the 1.0660/50 band, or daily lows.

EUR/USD focus on US data, Draghi

After yesterday’s positive session, the pair now seems to have resumed the bearish trend, testing the lower end of the range around the mid-1.0600s and extending further the rejection from last week’s tops beyond 1.0900 the figure.

The demand for the greenback remains steady on the other hand, pushing the US Dollar Index further north of the psychological 100.00 handle and always backed by solid US fundamentals and recent Fedspeak. At his speech on Monday, Philly Fed P.Harker coincided with some of his FOMC peers in a gradual tightening by the Fed, regarding three rate hikes this year as ‘appropriate’.

In the data space, nothing worth mentioning in Euroland other than the speech by ECB President M.Draghi at the launching of the new €50 banknote in Frankfurt. In the US docket, February’s Factory Orders and the speech by FOMC’s D.Tarullo (permanent voter, centrist) are due.

EUR/USD levels to watch

At the moment the pair is losing 0.14% at 1.0655 facing the immediate support at 1.0641 (low Apr.3) followed by 1.0624 (100-day sma) and finally 1.0597 (low Mar.14). On the flip side, a breakout of 1.0683 (high Apr.3) would target 1.0705 (high Mar.31) en route to 1.0716 (20-day sma).