EUR/USD has regained its traction and climbed to a daily high near 1.0750. Despite the upbeat ADP employment data, the downward revision to Unit Labor Costs for Q1 and the sharp drop seen in ISM Manufacturing PMI’s Prices Paid Index weighed heavily on USD, boosting the pair.
The EUR/USD pair trades around the 1.0700 level, not far below an early high of 1.0714. The chances of a steeper recovery are limited, according to the daily chart.
The pair keeps trading well below its 20 and 100 Simple Moving Averages (SMAs), with the shorter aiming to cross below the longer one in the 1.0810/20 price zone.
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At the same time, technical indicators remain within negative levels, with the Relative Strength Index (RSI) indicator consolidating near oversold readings and the Momentum gaining ground but below its 100 level.
The bullish potential also seems limited in the near term. The 4-hour chart shows that EUR/USD battles to advance above a bearish 20 SMA as the longer moving averages maintain their bearish slopes far above the current level.
At the same time, technical indicators have resumed their advances but stand within neutral levels. Bulls still need to regain the 1.0745 level to retake control of the pair.
Support levels: 1.0660 1.0620 1.0575
Resistance levels: 1.0745 1.0790 1.0825