EUR/USD faces rejection near daily pivot, IFO eyed

The corrective rally in EUR/USD faltered just shy of daily pivot located at 1.0560, sending the rate back towards daily lows struck at 1.0534 in Asia opening trades.

EUR/USD awaits data, Fedspeaks and FOMC minutes

Currently, the EUR/USD pair remains better bid at 1.0544, although looks exposed to downside risks, as the USD bulls consolidate yesterday’s gains and gather pace for the next push higher, with the FOMC minutes likely to emerge the key catalyst for fresh upside in the buck.

The FOMC Feb meeting minutes may reveal the Committee’s optimism on the US economy, which is likely to back the case for further rate rises this year. However, the Fed minutes may not strongly signal a March rate hike.

The common currency may also remain under pressure on the back of falling Germany treasury yields amid increased safe-haven demand for the bunds, in wake of political concerns surrounding French elections. Further, expectations of deterioration in the German IFO surveys could also keep the euro in the backseat against its American counterpart.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0556/60 (daily high & pivot). A break beyond the last, doors will open for a test of 1.0587 (5-DMA) and from there to 1.0600 (zero figure). On the flip side, the immediate support is placed at 1.0520 (Jan 6 low) below which 1.0500 (psychological levels) and 1.0478 (Jan 5 low) could be tested.