EUR/USD bounces to 1.0665 on upbeat EZ data

The EUR/USD sell-off seen in early Europe came to a halt, as the bulls found fresh support from mixed sentiment persisting on the European equity markets.

Moreover, the renewed uptick seen in the US dollar versus its main competitors fizzled out amid weaker treasury yields, aiding the minor-recovery in EUR/USD. The USD index recedes to 100.47, after having tested more-than two-week tops of 100.56, still up +0.11% on the day.

Furthermore, the common currency also received fresh boost from upbeat Eurozone February retail sales data, which arrived at +0.7% versus +0.5% expectations and +0.1% previously revised figure.

Looking ahead, next of note for the major remains  the US factory orders and trade balance data, followed by ECB Draghi’s and FOMC member Tarullo’s speech due later in NA session.

EUR/USD Technical Levels   

Slobodan Drvenica at Windsor Brokers Ltd explains, “The Euro is trading in extended consolidation above cracked Fibo 61.8% support at 1.0650, but was so far unable to clearly break lower. The upside remains capped by falling thick hourly cloud (spanned between 1.0670 and 1.0708) which maintains the pressure for final break below 1.0650 and test of  next strong supports at 1.0622 (daily cloud top / 100 SMA) and 1.0583 pivot (daily cloud base) in extension.”