EUR/USD bounces-back to 1.0780 as DXY breaches 100 mark

The selling pressure behind the US dollar picked-up significant strength last hours, providing extra legs to the rebound in EUR/USD from daily lows struck just ahead of the mid-point of 1.07 handle.

The sentiment around the greenback continue to play a major driver across the markets, impacting the moves in EUR/USD significantly. A less-hawkish stance adopted by the FOMC continues to haunt the USD bulls, while at the same time, ECB Nowotny’s hawkish remarks, indicating a rate hike on the cards, keeps the Euro broadly underpinned.

Moreover, mixed tone seen around the European equities also helps boost the funding currency status of the common currency, as attention turns towards the G20 and Trump-Merkel meeting on the cards today. Meanwhile, the US macro news in the form of the industrial production, consumer sentiment and labor market conditions index (LMCI) slated for release in the American session, could rescue the buck from multi-week troughs.

EUR/USD Technical Levels   

Karen Jones, Analyst at Commerzbank notes, “EUR/USD near term outlook is neutral to positive above 1.0590 (previous downtrend): The market should find that the previous downtrend, at 1.0590 currently, should still act as support. While it does so an upside bias persists near term. We have not overcome any resistance of note, nor are we expected to. Immediately overhead lies important resistance at 1.0820/29 and the market is expected to struggle here. Below 1.0590 will neutralise the chart once more.”