EUR/USD retraces daily gains towards 1.09

After rising to a fresh session high at 1.0925 in the early trading hours of the NA session, the EUR/USD pair gave most of its daily gains towards 1.09 as the greenback caught a buying wave. At the moment, the pair is trading at 1.0907, still up 0.1% on the day.

There were no fundamental triggers seen behind this late rise in the greenback, and the technical upsurge failed to carry the U.S. Dollar Index above 99, where it failed to hold earlier during the Europen session. As of writing, the index was at 98.90, flat on the day.

Today's economic docket from the euro area hasn't offered anything as the markets were closed due to the Labor Day holiday. The trading volume stayed low throughout the day and the reaction to the U.S. macro data, which included Fed's favorite inflation gauge, PCE price index, remained limited. Investors will be following the unemployment rate and Markit manufacturing PMI from the euro area on Tuesday, and the U.S. economic docket only features the sales of the total vehicles for April.

Technical levels to consider

1.0850 (Thursday low) is aligned as the initial support for the pair ahead of 1.0780 (200-DMA) and 1.0680 (100-DMA).  To the upside, resistances could be seen at 1.0950 (Apr. 27 high) followed by 1.10 (psychological level) and 1.1070 (Nov. 8 high).

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