EUR/USD looks to regain 1.06 amid negative equities

The ongoing rally in the greenback across the board appears to have lost legs, propelling a tepid-recovery in EURUSD in a bid to regain 1.06 handle.

EUR/USD supported at 1.0580

Currently, the spot now drops -0.48% to 1.0594, reversing from session lows of 1.0580 reached last hours. The EUR/USD pair takes on a minor-recovery amid stalled USD buying against its main competitors, while weaker tone seen around the European indices also  offer some support to the funding currency euro.

Moreover upbeat trade balance figures from the Euroland also provide fresh legs to the recovery seen in the main currency pair.  The Eurozone trade balance for November arrived at 22.7bn vs 20.8bn expectations.

Nothing of note in the NA session ahead for the major, as the US markets remain closed in observance of Martin Luther King Day. Hence, the spot would remain at the mercy of the USD dynamics and broad market sentiment for further momentum.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0650 (psychological levels). A break beyond the last, doors will open for a test of 1.0687 (5-week tops) and from there to 1.0700 (zero figure). On the flip side, the immediate support is placed at 1.0580 (daily low) below which 1.0553 (50-DMA) and 1.0526 (20-DMA) could be tested.