EUR/USD: Will it break above 1.1268 ahead of US GDP?

The EUR/USD pair staged a solid recovery in Asia and regained 1.12 handle in mid-Asia, as the USD bulls took a breather ahead of the key US economic data due later today.

EUR/USD awaits US macro news

The spot is seen reversing a dip to lows of 1.1185 levels and makes another run towards 2017 tops reached earlier this month at 1.1263 levels, as the latest leg higher in the US dollar against its major peers is seen fading amid weaker treasury yields.

The USD buying seen last hours eased following the comments from St. Louis Fed President Bullard and San Fransisco Fed head Williams, who advocated a gradual rate hike path in order to sustain the US economic momentum.

Moreover, intensifying risk-off trades amid falling Asian equities and oil prices also underpin the funding currency Euro. Meanwhile, the major also finds support from cross-driven strength, as the EUR/GBP cross remains heavily bid amid broad GBP weakness, in the wake of yesterday’s softer UK’s Q1 GDP figures.

Next of relevance for the pair remains the US durable goods, prelim GDP and consumer sentiment data, in absence of any macro news from the Euroland, with full markets returning after yesterday’s holiday in Germany, Switzerland and France.

EUR/USD Technical Levels

Valeria Bednarik at FXStreet noted: “The pair needs to advance beyond its recent multi-month high at 1.1267 to regain its upward momentum, becoming now more unlikely for this week, as a prudent Fed proven not enough. Nevertheless, downward corrective movements could extend down to 1.1080, without actually affecting the dominant bullish trend. Support levels: 1.1160 1.1120 1.1080 Resistance levels: 1.1220 1.1260 1.1300.”