EUR/USD retreats from highs, back around mid-1.1700s ahead of US durable goods
• Struggles to build on early tepid recovery move.
• German political crisis continues to weigh.
• Rebounding US bond yields prompt fresh selling.
The EUR/USD pair appeared to lose its corrective upside momentum and has now retreated around 20-25 pips from session tops.
The pair initially was seen building on its overnight modest recovery from one-week lows and touched an intraday high level of 1.1773 in the last hour. However, a goodish recovery in the longer-dated US Treasury bond yields capped further up-move.
This coupled with the latest German political crisis held investors back from buying the shared currency and further collaborated towards keeping a lid on the pair's tepid recovery move.
The pair, however, has managed to hold with modest daily gains for the second consecutive session and was being supported by persistent US Dollar selling bias.
Against the backdrop of firming December Fed rate hike expectations, investors now keenly await for the release of the latest FOMC meeting minutes for clues over the central bank's policy outlook post-December.
In the meantime, the key US durable goods orders data would be looked upon for some short-term trading impetus during the early NA session.
Technical levels to watch
Immediate support remains near the 1.1700 handle, below which the pair is likely to accelerate the slide towards 1.1660-55 intermediate support en-route the 1.1600 handle. On the upside, any bullish attempts might continue to confront fresh supply near the 1.1775 region and subsequent up-move might now be capped at the 1.1800 handle.