EUR/USD sees aggressive selling, 1.0500 tested

The bid tone around the US dollar picked-up pace across the board, fuelling a fresh bout of selling interest behind the EUR/USD pair ahead of the Eurozone PPI release.

EUR/USD rejected just below 50-DMA

Currently, the spot now advances +0.26% to 1.0512, retreating slightly away from session troughs struck at 1.0505 last hour. The main currency pair is seen making minor-recovery attempts  on 1.05 handle, after running into fresh supply near 50-DMA located at 1.0582.

Fresh demand for the US dollar re-emerged against its main competitors, which accelerated the retreat in the EUR/USD pair from four-day tops reached at 1.0575. Meanwhile, a recovery in the US treasury yields appears to have offered some respite to the USD bulls.

Next on tap for the major remains the Eurozone PPI and ECB monetary policy accounts, followed by the US ADP jobs and ISM non-manufacturing PMI data due later in the American session.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0575/82 (daily high/ 50-DMA). A break beyond the last, doors will open for a test of 1.0600 (zero figure) and from there to 1.0654 (Dec 30 high). On the flip side, the immediate support is placed at 1.0500 (key support) below which 1.0484 (5-DMA) and 1.0458 (20-DMA) could be tested.