EUR/USD slips into negative territory, Fedspeak eyed

Having posted a session high at 1.0556 level, the EUR/USD pair came under some selling pressure and drifted into negative territory, albeit held its neck above 1.0500 psychosocial mark.

Currently trading around 1.0520 region, resurgent US Dollar demand, in wake of strong US wage growth, seems to be only factor collaborating to the pair's retracement from daily peak. The downslide, however, was limited as upbeat release of Sentix Investor Confidence index from the Euro-zone was seen lending support to the shared currency. 

With Fed rate-hike expectations regaining market attention, investors on Monday will take cues from speeches from two regional Fed Presidents, Boston Fed President Rosengren and Atlanta Fed Lockhart, ahead of the Fed Chair Janet Yellen's appearance and monthly retail sales data from the US, later during the later part of the week. 

From technical perspective, the pair seems to be forming a bearish Double-Top chart pattern on 4-hourly chart and is reversing from 200-SMA (4-hourly) resistance. Hence, a follow through selling pressure would turn the pair vulnerable to continue drifting lower in the near-term.

Technical levels to watch

From current levels, 1.0500 psychological mark, closely followed by 1.0480-1.0475 region, seems to protect immediate downside, which if broken has the potential to drag the pair back towards retesting multi-year lows support near 1.0350 region, with some intermediate support near 1.0440-35 zone and 1.0400 round figure mark. 

On the upside, 1.0550-55 region (session peak) remains immediate hurdle, which if cleared decisively seems to lift the pair back above 1.0600 handle towards retesting an important resistance near 1.0615-20 region.