EUR/USD closes bullish gap near 1.0700, what next?

The bulls gave up control in the European session, knocking-off EUR/USD back to 1.07 handle as rebounding treasury yields boost the bids for the greenback across the board.

EUR/USD awaits EZ, German data

Currently, the spot now trades almost unchanged at 1.0699, testing daily lows of 1.0694. The main currency pair peeks into the red zone, largely in response to dissipating US dollar weakness, as markets look past Trump’s protectionist policies and now focus on the upcoming Eurozone and German data releases due later this session.

German CPI expected to tick higher – Danske Bank

The major dropped back towards the opening price and closed the bullish opening gap, despite negative European equities, as the sentiment around the greenback continues to drive the fx markets.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0750 (psychological levels). A break beyond the last, doors will open for a test of 1.0773 (7-week high) and from there to 1.0800 (zero figure). On the flip side, the immediate support is placed at 1.0682 (Jan 23 low) below which 1.0660 (20-DMA) and 1.0623 (Jan 20 low) could be tested.