EUR/USD recovery still limited below 1.0700

EUR/USD bounced from the lows and climbed to 1.0678, reaching the highest level since early European session. But the upside was limited the pair now trades at 1.0665/70, modestly lower for the day. 

The pair still holds a bearish tone. Earlier today it reached a 1-month thigh above 1.0700. It was unable to consolidate on top, lost momentum and changed the intra-day bias to the downside. 

Volatility in the EUR/USD pair remains lows on a quiet session, ahead of Wednesday’s FOMC decision and Yellen’s press conference. The greenback is trading close to the levels it close on Friday, except versus the pound that is outperforming. EUR/GBP pulled back from 0.8780 to 0.8715, adding pressure today to the EUR/USD. 

Levels to watch 

To the upside, around 1.0680, is the immediate resistance, that is where the 20-hour moving average stands. A break higher, could give momentum to the euro for a test of daily highs at 1.0715; above here the next resistance could be seen at 1.0775 (Jan 23 & 24 high). To the downside, the key intra-day support is located at the 1.0650 area; below, 1.0630 (Feb 28 high) and 1.0590 could be the potential strong support areas.