EUR/USD struggles to hold above 1.0600

EUR/USD staged a decent comeback on Monday, after making an approach to 2016 lows early during the Asian session, although the recovery lost momentum over the last hours.

EUR/USD rose from a low of 1.0524 scored during the Asian session to peak at 1.0625 during the New York session. However, the pair found resistance and settled in a tight range just above 1.0600. At time of writing, the pair is trading at 1.0603, up 0.45% on the day.

EUR/USD fell sharply during the second half of last week after the ECB announced it is extending its QE programme until December 2017 but at a slower pace of EUR 60 billion (down from EUR 80 billion).

Meanwhile, now market focus remains on Fed’s decision next Wednesday, with a 25 bps rate hike mostly priced in according to analysts.

EUR/USD levels to watch

In terms of technical levels, next supports are seen at 1.0524 (Dec 12 low), 1.0519 (Nov 24 low) ahead of its 1-year low of 1.0504 (2016 low, Dec 5) and 1.0499 (Dec 3 2015 low). On the flip side, resistances could be found at 1.0624/29 (Dec 12 & 9 highs), 1.0795 (Dec 5 high), 1.0857 (50-day SMA) and 1.0923 (Nov 11 high).

To learn more about this topic, check our video analysis:

eur usd from Tip TV Productions on Vimeo.