EUR/USD erases gains, drops back toward 1.0560

EUR/USD failed to hold to gains and pulled back. The euro remains under pressure across the board and it failed to benefit from the decline of the US dollar. 

The pair jumped during the American session and peaked at 1.0594, the highest level in two days. It tested the highs several times but it was unable to break higher. Then lost momentum and pulled back, trimming gains. 

The retreat from the highs found support at 1.0560 and near the end of the day, it trades at 1.0570, less than 15 pips above yesterday’s closing price.

The greenback weakened after the interview on CNBC, with Treasury Secretary, Steven Mnuchin. He said that the appreciation of the US dollar and the rally in Wall Street shows confidence on the US economy. He didn’t accuse China of being a currency manipulator. Regarding the tax reform, he expects it to be approved before August but didn’t bring any details. 

Technical levels 

To the upside, resistance levels might be located at 1.0575 (Feb 22 high), 1.0590/95 (daily high) and 1.0605/10 (downtrend line / Feb 17 low). On the flip side, support is seen at 1.0565 (20-hour moving average), 1.0535 (daily low) and 1.0495 (Feb 22 low).