EUR/USD erases losses, remains under 1.0600

EUR/USD moved off daily lows on the back of a retreat of the US dollar in the market. The greenback lost strength and pulled back modestly during the American session. 

The pair earlier bottomed at 1.0557, the lowest since Friday and now is hovering around 1.0575/80, at the same level it closed yesterday. Volatility remains low across financial markets all day and EUR/USD moved within a range of less than 50 pips. 

Economic data had no impact on the pair today and traders focus on US jobs data with Wednesday ADP report and Friday’s NFP. While in the Eurozone, on Thursday the European Central Bank will announce its decision on monetary policy. Although no change is expected from the central bank, the statement and Draghi’s words could have a large impact on the euro. 

Technical levels 

EUR/USD, for the third week in a row, continues to move sideways, inside a range with resistance at 1.0630 and support around 1.0500; during the current week, price remained far from 1.0500 as the 1.0550/55 area is acting as an intermediate support. 

A consolidation on top of 1.0620/30, could open the doors for a move toward 1.0700, while to the downside, under 1.0545 a test of 1.0490/95 is likely. A close significantly under 1.0490, could expose 2017 lows.