EUR/USD regains poise, hits fresh highs near 1.0565

The bulls were rescued by strong bids found just ahead of 1.05 handle, propelling a solid pullback in EUR/USD back beyond the mid-point of the last.

The EUR/USD pair appears to have regained lost momentum and now looks to regain 1.06 handle, as broad based US dollar recovery loses legs, knocking-off the greenback back towards two-week troughs.

The USD bears regain control as a profit-taking spree across the board extends on the last trading day of 2016. While Thursday’s disappointing US goods trade balance data also collaborate to the downbeat tone in the buck.

Moreover, subdued trading activity around the European equities also lifts the sentiment around the funding currency euro. All in all, the euro once again emerges on the losing end versus the US dollar, as markets favor the US currency buying into the Trump’s promises of fiscal spending and policy reforms and hopes of a revival in the US economic growth.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0600 (zero figure). A break beyond the last, doors will open for a test of 1.0653 (2-week highs) and from there to 1.0673 (mid-Dec high). On the flip side, the immediate support is placed at 1.0500 (round number) below which 1.0471 (5-DMA) and 1.0451 (10-DMA) could be tested.