EUR/USD faded the spike to 1.0660

The single currency has eroded part of the earlier spike to the 1.0660 area vs. the buck, with EUR/USD now returning to the 1.0645/40 band.

EUR/USD unchanged on EC’s forecasts

Spot remained apathetic after the European Commission published its Winter 2017 Economic Forecasts for the euro region.

The European Commission has revised higher its GDP forecasts for 2017 and 2018, while it now expects consumer prices to rise more than the previous report during the current year. Prices in the next year should remain unchanged.

Regarding the unemployment in the euro bloc, the EC sees the downtrend accelerating its pace for 2017 and 2018.

In the meantime, the pair keeps navigating a narrow range amidst a consolidative theme around the buck and a generalized upbeat mood surrounding the risk-associated assets.

Other than the renewed bid tone around the Dollar, recent EUR weakness could obey to the effervescence around Greece following failed attempts to clinch a deal between the Greek government and international creditors on Friday over bailout negotiations.

On another direction, the speculative community continues to trim EUR net shorts, retreating to the lowest level since late May during the week ended on February 7, as showed by the latest CFTC report.

EUR/USD levels to watch

At the moment the pair is losing 0.02% at 1.0638 facing the next support at 1.0608 (low Feb.13) followed by 1.0587 (low Jan.19) and finally 1.0452 (low Jan.11). On the upside, a breakout of 1.0670 (high Feb.10) would target 1.0710 (20-day sma) en route to 1.0758 (100-day sma/short-term resistance line).