EUR/USD jumps to test 5-DMA, EZ CPI, ECB eyed

The selling interest behind the US dollar gathers steam post-European open, triggering a renewed uptick in the EUR/USD pair beyond 1.07 handle.

EUR/USD awaits CPIs                                                                                        

Currently, EUR/USD now jumps +0.40% to 1.0732, hovering close to fresh session highs scored at 1.0737, where 5-DMA coincides. The main currency pair has picked-up significant strength last minutes, mainly driven by fresh selling-wave seen behind the greenback across the board as the US treasury yields accelerate to the downside.

Moreover, a softer tone seen around the European equities also underpins the funding currency status of the euro, and hence, offers some respite to the bulls.

The immediate focus now remains on the Eurozone final CPI report due ahead of ECB minutes, while the US CPI and Fed Chair Yellen’s testimony remains in the spotlight.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0737 (daily high/ 5-DMA). A break beyond the last, doors will open for a test of 1.0800 (round figure) and from there to 1.0840 (10-DMA). On the flip side, the immediate support is placed at 1.0680 (daily lows) below which 1.0647 (daily S1) and 1.0600 (zero figure) could be tested.

To learn more about this topic, check our video analysis