EUR/USD eases from weekly tops, but keeps 1.06

The EUR/USD pair extends its bullish momentum into a second day today, although the bulls take a breather in early Europe, awaiting fresh impetus for the next push higher.

EUR/USD making lower highs on hourly sticks

Currently, the spot now advances 0.32% to 1.0609, reversing a spike to one-week highs reached at 1.0627 in mid-Asia. The shared currency is seen losing momentum against its US counterpart ahead of the European opening bells, with EUR/USD now looking to test the resistance-turned support located at 1.0600.

The main currency pair stalls its upmove as the greenback stages a tepid-bounce, after having run through heavy offers versus most of its main competitors earlier on the day. Meanwhile, the US dollar index now drops -0.26% to 101.64, recovering slightly from a two-day low struck previously at 101.48.

The continued broad USD selling can be mainly attributed to unimpressive comments by Fed official Rosengren and poor US LMCI data published a day before. Going forward, amid a lack of fresh economic data due to be reported in the European session, the sentiment around the US dollar will play a key role ahead of the US second-tier jobs data.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0627 (1-week high). A break beyond the last, doors will open for a test of 1.0654 (Dec 30 high) and from there to 1.0700 (round figure). On the flip side, the immediate support is placed at 1.0571 (5-DMA) below which 1.0525 (10-DMA) and 1.0481 (20-DMA) could be tested.