EUR/USD falters near mid-1.0600s, retreats back to 100-DMA

The EUR/USD pair faded early European session bullish spike to session peak near mid-1.0600s and has now retreated back to the 1.0630-25 band.

Thin liquidity conditions, in wake of an extended holiday in Europe, failed to assist the pair to build on its early up-move led by broad based greenback weakness. The US Dollar was being weighed down by Friday's disappointing US macro data, and escalating geopolitical tension around the Korean peninsula. 

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Today's price action also seems to indicate investors' nervousness ahead of the upcoming French Presidential election. Despite of the recent polls indicating a clear win for Emmanuel Macron, market participants remain reluctant to buy the shared currency and collaborated towards capping further up-move for the major. 

Traders now look forward to the US economic docket, featuring the release of Empire State Manufacturing Index for some fresh impetus during early NA session.

Technical levels to watch

The 1.0600 handle should continue to protect immediate downside, which if broken decisively could pave way for a fresh leg of depreciating move for the pair, initially towards 1.0545-40 intermediate support and eventually towards the key 1.05 psychological mark.

On the upside, follow through momentum above mid-1.0600s is likely to get extended towards 1.0675-80 strong hurdle, above which the pair seems all set to surpass the 1.0700 handle and aim towards testing its next resistance near 1.0725-30 zone.