EUR/USD rebounds to 5-DMA amid aggressive USD selling

The EUR/USD pair remains volatile within range above 50-DMA (1.0605), after having broken higher from the overnight consolidation phase in early Asia.

EUR/USD awaits EZ GDP, German ZEW

Currently, the spot advances +0.30% to fresh daily tops of 1.0632, heading for a retest of 1.0650 levels. Fresh bids emerged at 50-DMA support over the last hours, prompting a solid recovery in EUR/USD, in wake of renewed weakness seen around the greenback versus its main competitors.

A renewed risk-off wave hit the markets after the European equities turned negative, weighing down on treasury yields, while boosting the funding currency status of the euro.

However, it remains to be seen whether the major can sustain the pullback amid poor German GDP report, as EUR traders now eagerly await the Eurozone flash GDP and German ZEW economic sentiment data for fresh momentum.

Meanwhile, the spot may also get influenced by the US PPI data and Fed Yellen’s testimony due later in the NA session.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0679/84 (100 & 10-DMA). A break beyond the last, doors will open for a test of 1.0710 (20-DMA) and from there to 1.0751 (Feb 7 high). On the flip side, the immediate support is placed at 1.0605 (50-DMA) below which 1.0587 (Jan 19 low) and 1.0550 (psychological levels) could be tested.