EUR/USD: Intraday recovery above 1.06 short lived

FXStreet (Mumbai) - The recovery in the EUR/USD is proving to be a short lived one as the pair is back below 1.06. The pair had managed to recover from the low of 1.0558 to 1.0626 largely on account of technical correction.

Talk of EUR/USD parity capping gains

The EUR could be offered on technical correction on a rising chatter about the EUR/USD pair reaching parity level due to the ECB’s massive bond buying program and the Fed’s QE program. The intraday recovery to 1.0626 could have been utilized by markets to initiate fresh shorts. It remains to be seen whether the pair breaks below the latest 12-year low of 1.0558. However, with rising US yields and falling Eurozone yields, the odds definitely appear in favor of further sell-off.

EUR/USD Technical Levels

The immediate resistance is seen at 1.0626, above which gains could be extended to 1.0635 (hourly 10-MA). On the flip side, support is seen at 1.0558 and at the psychological level of 1.05.