EUR/USD nears 1.06, Euro Stoxx dips

By FXStreet FXStreet (Mumbai) – The EUR/USD pair neared 1.06 handle in Europe, as the European equities suffered losses in the early session.

Stays below 1.06

The pair continues to trade below 1.06, after closing below the same on Friday. The shared currency found support in weak Eurozone stocks. The pan-European Euro Stoxx 50 index fell 0.30% in early trade and helped the EUR remain resilient to the worsening US-German 10-year bond yield spread.

The immediate focus now is on the preliminary German CPI. Later in the day, the pair could be influenced by the US housing data and regional manufacturing indices.

EUR/USD Technical Levels

At 1.0590, the immediate resistance is seen at 1.06 and 1.0616 (hourly 100-MA). A break above would expose the hourly 200-MA at 1.0641. On the other hand, another failure to take out 1.06 could trigger a fresh drop to the support at 1.0566 (Nov 25 low) and 1.05 handle.
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Source:: FX Street