EUR/USD keeps 1.0700 post-US data

The single currency has reverted the initial bearish tone and is now pushing EUR/USD to the upper end of the range in the 1.0715/20 band.

EUR/USD extends the positive streak

The pair is now on its way to close the sixth consecutive week with gains as the upside momentum around the Dollar has subsided following the disappointing figures from Q4 GDP (1.9% act. vs. 2.2% exp.).

The greenback has faded its daily advance to levels above 100.50 when tracked by the US Dollar Index - and keeps the red territory so far - despite Consumer Sentiment gauged by the Reuters/Michigan index rose to the highest level in 13 years to 98.5 for the current month.

Looking ahead, ‘Trumponomics’ is expected to drive the mood around the buck – and the pair – at least in the near term, although in the longer run the prospects of further tightening by the Federal Reserve vs. the accommodative stance from the European Central Bank should add to the case of a stronger buck.

EUR/USD levels to watch

The pair is now up 0.26% at 1.0709 facing the next hurdle at 1.0775 (high Jan.24) followed by 1.0798 (high Dec.5) and then 1.0873 (high Dec.8). On the flip side, a breakdown of 1.0655 (low Jan.26) would open the door to 1.0619 (20-day sma) and finally 1.0589 (55-day sma).