EUR/USD rebounds at 1.0655 and trims losses

EUR/USD is moving off daily lows, recovering ground after bottoming during the American session at 1.0655, the lowest level since last Friday. As the US dollar retreats across the board, the pair is rising back toward 1.0700. Currently, it trades at 1.0695, still down 0.50% for the day.

The US dollar trimmed gains in the market as US Treasuries recovered. The 10-year yield, that earlier reached 2.550%, it was approaching 2.500% again. The decline in yields weakened the greenback. The US Dollar Index peaked at 100.70 two hours ago and now is at 100.39. 

Economic data released today from the US (Markit services PMI, Jobless claims, and trade balance) had little impact on the market. On Friday, the first estimate of 4Q GDP will be released (and also the durable goods orders and the Michigan consumer confidence report). 

EUR/USD levels to watch 

To the upside, resistance levels might now be seen at 1.0710 (Jan 25 low), 1.0755 (Jan 23 high) and 1.0775 (2017 high). To the downside, support could be located at 1.0655 (daily low), 1.0620 (Jan 20 low) and 1.0585 (Jan 19 low).