EUR/USD struggling around 1.0580, US data eyed

The single currency is looking to stabilize following yesterday’s sharp rebound to the upper-1.0500, with EUR/USD now gyrating around 1.0580.

EUR/USD upside halted near 20-day sma

The selling sentiment around the buck has re-emerged on Thursday after US Treasury Secretary S.Mnuchin failed to shed more light on the planned tax reform by the Trump’s administration, only noting the commitment to pass the bill by August.

Spot has thus managed to stage quite a sharp rebound from fresh lows in sub-1.0500 levels to the boundaries of 1.0600 the figure, where the rally seems to have run out of legs for the time being.

Nothing worth mentioning data wise in Euroland, whereas New Home Sales and the final February reading of the Reuters/Michigan index will take centre stage across the pond.

EUR/USD levels to watch

At the moment the pair is up 0.06% at 1.0587 facing the initial hurdle at 1.0594 (55-day sma) followed by 1.0658 (20-day sma) and finally 1.0682 (high Feb.16). On the flip side, a breach of 1.0492 (low Feb.22) would target 1.0452 (low Jan.11) en route to 1.0339 (2017 low Jan.3).