EUR/USD clings to recovery gains beyond 1.0600 handle ahead of US data

The EUR/USD pair maintained its bid tone above 1.0600 handle, albeit has retraced mildly from session peak level of 1.0640, and is currently trading around 1.0625-30 region ahead of US economic releases.

The greenback lost some of its upbeat US economic data and OPEC deal-led Wednesday's bullish momentum as investors seemed to trim bullish USD bets ahead of the closely watched NFP data, which eventually helped the pair to stage a minor recovery. 

Looking at the broader picture, the pair has been oscillating within a narrow trading range, closer to 11-month lows touched last week, and is pointing to near-term consolidation, following the post-US election sharp downslide of over 750-pips, before resumption of prior weakening trend. Moreover, investors also seem to position themselves cautiously in wake of the Italian constitutional referendum on Sunday, which is also contributing towards near-term range-bound price-action around the major. 

On Thursday, focus would be on the US ISM manufacturing PMI report, which might provide short-term impetus, while the broader direction would remain dependent on the US non-farm payrolls data on Friday. 

Technical levels to watch

Strength above session high, leading to a subsequent momentum above 1.0650 resistance area has the potential to lift the pair towards an important resistance near 1.0700 round figure mark and the momentum could further get extended towards resistance near 1.0725-30 region. On the flip side, weakness below 1.0600 handle might continue to find support near 1.0585-80 area, which if broken decisively is likely to drag the pair below 1.0560 support (Wednesday’s low) towards retesting multi-month lows support near 1.0520 region.