EUR/USD back below 1.0700, Fedspeak on sight

EUR/USD has returned to the 1.0680 area after the failed attempt to sustain a break above the 1.0700 barrier.

EUR/USD upside capped above 1.0700

The pair has returned to the negative territory after sellers have stepped in around session tops near 1.0710, coincident with yesterday’s spike and the 20-day sma.

A brief knee jerk in the greenback earlier in the European morning prompted spot to leap to daily highs above 1.0700 the figure, although the bull run lacked of follow through.

Data wise today, German trade surplus shrunk to €18.4 billion in December, coming in below expectations. Across the pond, Initial Claims are due along with speeches by St. Louis Fed J.Bullard (2019 voter, neutral) and Chicago Fed C.Evans (voter, dovish).

EUR/USD levels to watch

At the moment the pair is losing 0.19% at 1.0678 facing the next support at 1.0638 (low Feb.8) followed by 1.0617 (low Jan.30) and finally 1.0606 (55-day sma). On the upside, a breakout of 1.0715 (high Feb.8) would target 1.0770 (100-day sma) en route to 1.0829 (high Feb.2).