EUR/USD looks to regain 1.0600 as USD retreats, Sentix eyed

The EUR/USD pair is seen extending its gradual recovery mode into early Europe, with the bulls striving hard to regain bids amid broad based US dollar retreat from three-week peaks.

The spot hit a fresh multi-week low at 1.0570 in early Asia after the US dollar index rallied to the highest levels since March 15 at 101.22.

However, the losses in EURUSD remain capped as the USD retreats amid dovish comments from St. Louis Fed President Bullard, citing that there is no pressing need to hike rates. He also added that Fed may only need to do one more rate hike this year.

 In the day ahead, it remains to be seen if the major can sustain the recovery, as the greenback is expected to keep its bullish momentum intact broadly, despite weak NFP report, amid speculations of a June Fed rate hike and commencement of balance sheet normalization in December.

Data is light out of the Euroland in the holiday-shortened week ahead, while the US docket offers plenty of crucial macro updates, including the CPI, PPI and retail sales data. For today, the major will get influenced by the Eurozone Sentix Investor Confidence, US LMCI and Fed Chair Yellen’s speech.

EUR/USD Technical Levels   

Technical resistances for the pair are aligned at 1.0600/13 (zero figure/ 5-DMA), 1.0641/53 (10 & 50-DMA) and finally 1.0687/90 (Apr 6 & 5 high). On the flip side, the spot finds next support at 1.0570 (multi-week low), a break below that level could open the door to 1.0533/23 (Mar 8 & 9 low) and 1.0500 (key support).