EUR/USD remains capped at 100-DMA, US data holds the key

A softer tone surrounding the greenback helped the EUR/USD pair to defend 1.0600 mark and bounce back to 100-day SMA resistance near 1.0625-30 region.

The up-move, however, lacked any follow through momentum and the pair remained capped below the said hurdle amid absent fundamental drivers and holiday thinned market liquidity conditions. 

Meanwhile, escalating geopolitical tensions, especially after comments from N. Korean finance minister, supported the funding currency status of the Euro and weighing a bit on the US Dollar, resulting into a mildly positive trading sentiment surrounding the major. 

It, however, remains to be seen if the pair continues to hold the 1.0600 important support or confirms a fresh bearish breakdown following the release of important US macro data - CPI and monthly retail sales data. 

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Technical levels to watch

On a sustained move above 1.0625-30 immediate barrier, the pair is likely to move past 1.0645 intermediate barrier and aim towards retesting 1.0675-80 strong hurdle. 

Meanwhile on the downside, the 1.0600 mark remains immediate strong support to defend, which if broken decisively is likely to accelerate the slide towards 1.0570 support (one-month low touched on Monday) ahead of 1.0540 horizontal support.