EUR/USD eyes a break below 1.0600 on data

The EUR/USD pair failed to sustain at higher levels above 5-DMA (1.0626), and now reverts towards 1.06 handle, following the release of the economic data from Germany and Eurozone.

EUR/USD: Focus shifts to US PPI & Yellen

Currently, the spot now trades +0.09% higher at 1.0609, testing session lows struck previously at 1.0607, where 50-DMA intersects. The euro remains unimpressed by mixed Eurozone datasets as well as on disappointing German ZEW surveys.

Eurozone flash Q4 GDP arrived at 0.40% q/q vs. est 0.50% and prev 0.50%, while the bloc’s industrial production data bettered expectations, coming in at 2.00% y/y vs. est 1.70% and 3.20% last. The German Feb ZEW current situation stood at 76.4 vs 77.0 expected.

The main currency pair remains vulnerable amid a series of below estimates fundamentals, while a broad based recovery in the greenback also drags the EUR/USD pair away from the daily tops reached at 1.0633. German prelim Q4 GDP m/m: Expands less than expectations

All eyes now remain on the US PPI data and Fed Yellen’s testimony before the Senate Banking Committee due later in the NA session.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0679/84 (100 & 10-DMA). A break beyond the last, doors will open for a test of 1.0710 (20-DMA) and from there to 1.0751 (Feb 7 high). On the flip side, the immediate support is placed at 1.0605 (50-DMA) below which 1.0587 (Jan 19 low) and 1.0550 (psychological levels) could be tested.