EUR/USD offered near 100-DMA, revisits daily lows

The US dollar stages a minor comeback against its main competitors in early Europe, now pushing EUR/USD to test daily lows struck previously at 1.0722.

EUR/USD back below 5-DMA at 1.0728

Currently, the spot now drops -0.07% to 1.0724, having failed several attempts to take-out key resistance located near 100-DMA (1.0744). After a brief phase of downside consolidation seen almost throughout the Asian session, the main currency pair is seen breaking lower ahead of the European open, as the bears regain control amid a recovery in the US treasury yields, which fuels renewed bids in the US dollar across the board.

The EUR/USD pair surrendered gains and now extends its losing streak into a second day, as demand for the US currency appears to have returned as markets digest latest news surrounding Trump’s presidency, which suggests that the US president is on track to fulfill his campaign promises.  

Trump expected to order Mexican border wall today – NY Times

Trump clears way for controversial oil pipelines – RTRS

However, losses may remain restricted as the euro manages to find some support from ECB board member Lautenschlaeger’s comments, citing that she is optimistic that an exit of bond-purchase program is near.

Focus now shifts towards the German Ifo business surveys due later in the European session for fresh impetus on the EUR.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0744 (100-DMA). A break beyond the last, doors will open for a test of 1.0772 and from there to 1.0800 (zero figure). On the flip side, the immediate support is placed at 1.0700 (round number) below which 1.0688 (10-DMA) and 1.0620 (20-DMA) could be tested.