The EUR/USD pair pays no heed to the Eurozone macro updates, as the sentiment around major continues to be driven by the USD dynamics.
EUR/USD eyes 20-DMA at 1.0718
Currently, the spot drops -033% to 1.0747, testing session lows struck at 1.0743 in the last hour. The main currency pair remains heavily offered in the European session, as the greenback picked-up significant strength over the last hours, correcting a part of downbeat US jobs report-led slide.
While on the EUR-side, the shared currency was little impressed by a stronger German factory orders print and in-line with estimates Eurozone Sentix Investor Confidence numbers. The Sentix gauge came in at 17.4 in Jan, while the German factory orders jumped 5.2% in Dec versus 1.7% expectations.
However, markets believe that falling treasury yields and weaker European markets could underpin the demand for the euro as a funding currency and therefore, cushion the downside in the spot. Next of note for the major remains the speech scheduled from ECB President Draghi later today.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance 1.0800 (round number). A break beyond the last, doors will open for a test of 1.0814 (8-week high) and from there to 1.0850 (psychological levels). On the flip side, the immediate support is placed at 1.0718/03 (20 & 100-DMA) below which 1.0681 (Jan 31 low) and 1.0655 (Jan 26 low) could be tested.
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