EUR/USD drops back to 1.0400 amid broad USD recovery

After a brief phase of consolidation seen in late-Asia/early Europe, the EUR/USD pair finally broke lower to breach 1.0400 support amid mixed European equities.

EUR/USD looks vulnerable

Currently, EUR/USD gains 0.11% to 1.0399, testing fresh session lows struck at 1.0395 some minutes ago. After having failed several attempts to take-out 5-DMA barrier at 1.0419, the main currency pair ran through fresh offers, largely as the US dollar stalled its corrective slide and recovered ground against most if its majors amid a minor-recovery staged by the US treasury yields.

Moreover, the euro also continues to be weighted by latest comments from ECB policymaker Rimsevics, citing that the ECB accommodative monetary policy has failed to boost the economy substantially.

Looking ahead, the major will get influenced by the US existing homes sales and Eurozone consumer confidence data due later in the NA session. While Thursday’s US dataflow will provide some signs of life to the holiday-thinned markets.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0419/20 (daily high/ 5-DMA). A break beyond the last, doors will open for a test of 1.0454 (daily R2) and from there to 1.0500 (round figure). On the flip side, the immediate support is placed at 1.0385/83 (daily pivot & low) below which 1.0352 (yearly/ 14-yr lows and 1.0300 (key support) could be tested.