- DXY regains poise in Asia.
- The 1.2092 Sept High still in sight?
- A light calendar ahead.
The EUR/USD pair defends minor bids in Asia, having failed to sustain the post-NFP recovery near the midpoint of the 1.20 handle.
The recovery ran into resistances located near 1.2050 levels once again, as the positive tone seen around Treasury yields continue to offer some support to the US dollar against its major peers. The USD index bounced-off lows near 91.60 levels to now trade at 91.72, almost unchanged on the day.
The uptick in the average hourly wage seen in Friday’s US labor market reportlifted the 10-year Treasury yields from 2.43% to 2.48%, heading back towards the upper end of its three-month range.
More so, softer Eurozone flash CPI estimate released last Friday poses headwinds to the Eurozone growth outlook, weighing down on the sentimentaround the EUR, which in turn keeps further upside in check. Meanwhile, attention shifts towards yield differential between both continents ahead of the US CPI report due out in the week ahead.
Looking ahead, “the upcoming week will be quite a busy one in terms of macroeconomic releases, although the US won’t release anything relevant on Monday, while the EU will see some minor figures, including the Union Retail Sales and German factory orders,” notes Valeria Bednarik, Chief Analyst at.
Additionally, the Eurozone Sentix Investor Confidence and FOMC member Bostic’s speech will also remain in focus today.
EUR/USD Technical Levels
Bednarik adds: “In the 4 hours chart, the pair is a few pips below a horizontal 20 SMA, while technical indicators head lower and are about to enter the negative territory, supporting the case of a short-term bearish extension, moreover on a break below 1.2000. Support levels: 1.2000 1.1960 1.1920. Resistance levels: 1.2065 1.2100 1.2140.”