EUR/USD flirts with multi-week lows, US data eyed

EUR/USD’s tepid-recovery ran into offers at daily pivot in early Europe, knocking-off the rate to a fresh five-week low of 1.0547.

EUR/USD awaits US data, Fedspeaks

Currently, the spot drops -0.20% to 1.0556, accelerating the declines from 1.0587, daily highs. The main currency pair is back on the offers and fails to benefit from a better Eurozone trade balance report, as the USD bulls remain in command and drive the greenback to fresh four week tops just shy of 101.50 versus it main competitors.

European Monetary Union Trade Balance s.a. came in at €24.5B, above forecasts (€22.5B) in December

Yellen’s hints on rates hikes this year, brought a March rate hike back on the table, pushing the treasury yields higher and in turn the US dollar.

Looking ahead, US CP figures, industrial production, TIC flows, the empire state index, retail sales and the NAHB index will fill in the US calendar today.

While speeches from Fed officials Rosengren and Harker cannot be overlooked amidst Yellen’s testimony before the House Financial Services Committee.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0602/08 (5 & 50-DMA). A break beyond the last, doors will open for a test of 1.0658 (10-DMA) and from there to 1.0676 (100-DMA). On the flip side, the immediate support is placed at 1.0520 (Jan 6 low) below which 1.0500 (psychological levels) and 1.0471 (daily S3) could be tested.