EUR/USD off-lows, re-attempts 1.0650 ahead of ZEW

The EUR/USD pair is seen recovering losses over the last hours, with the bulls now looking to regain 1.0650 barrier amid stalled USD buying across the board.

In early Europe, the pair dipped to lows near 1.0630 region after the greenback regained momentum and rallied across the board, in response to a sharp sell-off seen in GBP/USD on renewed Brexit-related jitters.

However, the recovery appears fragile, as the treasury yields remain positive amid expectations of a Fed rate hike tomorrow, while nervousness ahead of tomorrow’s Dutch general elections also keeps the EUR on the back foot.

All eyes now remain the German ZEW economic sentiment and Eurozone industrial production data due to be reported shortly. Also, the ECB President Draghi’s speech and US PPI number will remain in limelight for further momentum on the prices.

EUR/USD Technical Levels   

Valeria Bednarik, Chief Analyst at FXStreet noted, “The EUR/USD pair retains the positive tone in its 4 hours chart, struggling now around a still bullish 20 SMA that has crossed above the largest 100 and 200 ones, whilst technical indicators have pared their declines within positive territory, indicating diminishing selling interest at this levels. Further declines below 1.0630, however, will open doors for further slides, with 1.0590 and 1.0565 as the next daily supports and probable bearish targets.”

“An upward acceleration through 1.0660 could favor a recovery up to the 1.0700/20 region, where selling interest will likely cap the advance ahead of Fed's meeting this Wednesday,” Valeria added.