EUR/USD: Fresh bids emerge just ahead of 1.0700

The bid tone behind the US dollar appears to have weakened a bit in early Europe, allowing a tepid-bounce in EUR/USD, after having tested 1.07 handle.

EUR/USD supported at 100-DMA

Currently, the spot drops -033% to 1.0713, having posted a day’s high at 1.0754 and day’s low at 1.0705. The main currency pair remains deep in the red zone, although moves slightly away from lows amid stalled USD buying across the board, as weaker treasury yields cap further gains in the buck.

Moreover, widening bonds yield differentials between the French 10-year government bonds and 10-year German bund yields amid rising political uncertainty surrounding the elections, also collaborate to the weakness in the EUR/USD pair.

Attention now turns to the German industrial production data that will be reported ahead of the European open, and may provide fresh impetus on the euro. While the US JOLTS job openings data is next on the tap during the NA session.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.757 (5-DMA). A break beyond the last, doors will open for a test of 1.0800 (round number) and from there to 1.0814 (8-week high). On the flip side, the immediate support is placed at 1.0699 (100-DMA) below which 1.0681 (Jan 31 low) and 1.0655 (Jan 26 low) could be tested.