EUR/USD: Recovery gains traction in Asia, nears 5-DMA

The overnight sell-off in the US dollar across the board intensifies in the Asian trades this Thursday, providing extra legs to recovery in EUR/USD back beyond 1.04 barrier.

EUR/USD looks to regain 5-DMA at 1.0443

Currently, EUR/USD advances +0.21% to fresh daily tops of 1.0438, having surpassed 10-DMA resistance located at 1.0432 last minutes. The main currency pair found solid support near 1.0420 region and climbed further into positive territory, extending its recovery from almost one-week lows reached at 1.0369 a day before.

The sharp reversal in the EUR/USD pair can be mainly attributed to some aggressive selling seen around the greenback against its main competitors, with the USD index now testing 103 handle, after having peaked at 103.58, despite a negative surprise seen in the US pending home sales data.

Moreover, slowing volumes and irregular volatility amid a holiday-shortened week also add to the erratic moves seen behind the US dollar, which has a significant impact on the fx pairs, including EUR/USD. Next of note for the major remains a slew of economic data from the US docket due later on Thursday.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0473 (daily R1). A break beyond the last, doors will open for a test of 1.0500 (round figure) and from there to 1.0544 (Dec 15 high). On the flip side, the immediate support is placed at 1.0421 (daily pivot) below which 1.0400 (zero figure) and 1.0369 (previous low) could be tested.