EUR/USD: Bears continue to guard 1.0770 barrier

Despite a broadly subdued US dollar and softer treasury yields, the EUR/USD pair remains side-lined in a narrow range, but holds well above the key support located near 1.0740, the confluence zone of 5 and 100-DMA

EUR/USD clings to minor gains

Currently, the spot now trades +0.07% higher at 1.0759, reversing a dip to near daily lows of 1.0752. The euro remains better bid versus its American rival, although lacks follow-through amid Trump’s presidency-led renewed optimism in markets, which curbs demand for the funding currency EUR.

While a phase of bearish consolidation in the greenback versus its main competitors, also keeps further upside in check in EUR/USD, leaving the spot hovering within a striking distance of seven-week tops reached 1.0773 earlier this week.       

Markets now look forward to the German central bank Chief Weidmann’s speech and Eurogroup meetings for further impetus on the shared currency. Also, we have a slew of US macro data that will have a major impact on the USD dynamics later today.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0773 (7-week high). A break beyond the last, doors will open for a test of 1.0800 (zero figure) and from there to 1.0841 (daily R3). On the flip side, the immediate support is placed at 1.0700 (round number/ 10-DMA) below which 1.0650 (key support) and 1.0638 (20-DMA) could be tested.