EUR/USD remains capped below 1.0900 in early Europe

The EUR/USD pair moved-off lows, but the recovery attempts remain capped below 1.09 handle as the US dollar regains poise and turns positive against most its major peers.

EUR/USD awaits US data, Draghi

Currently, EUR/USD trade almost unchanged at 1.0888 levels, having found solid support at 1.0875, session lows. The main currency pair staged a solid comeback from a brief dip seen earlier on the day, as negative performance on the Asian indices rescued the funding currency euro.

However, the major struggles to take on the recovery above 1.09 handle as monetary policy divergence continue to boost the greenback at the expense of the common currency. Meanwhile, the USD index spiked to 98.81 highs in early Asia, and now trades around 98.75, still up +0.05% on the day.

Markets now await a strong of second-tier macro releases from the Euroland for fresh impetus, while the US goods trade balance, new home sales and flash services PMI will be also eyed for fresh cues on the US economic outlook, which will eventually impact Fed’s interest rate decision.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0905 (Oct 25 high). A break beyond the last, doors will open for a test of 1.0927 (10-DMA) and from there to 1.1000 (key resistance). On the flip side, the immediate support is placed at 1.0850 (psychological levels) below which 1.0820 (March lows) and 1.0800 (round figure) could be tested.