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EUR/USD supported at 1.08, German data eyed

FXStreet (Mumbai) - The shared currency recovers partial losses versus the greenback in the early European trades, with EUR/USD holding above 1.08 handle, largely on the back of a minor rebound seen in the US dollar, correcting heavy losses following downbeat US jobs and housing data.

EUR/USD recovers partial losses

The EUR/USD trades lower by -0.16% at 1.0805 levels, retreating from highs at 1.0829. EUR/USD seems to be stuck around 1.08 handle awaiting fresh incentives from the upcoming crucial German IFO data.

German IFO report is expected to show a reading of 108.5. The previous reading came in at 107.9. This report is a leading indicator of economic health and tends to create major volatility. German IFO will be released at 8GMT.

The EUR/USD pair extends losses from Asia heading in to European opening bells largely as the US dollar reversed previous losses and kept gains versus its major counterparts.

However, the upside in the EUR/USD pair remains capped as weaker German bund yields and Greek concerns continue to pull the euro down, with the pressure rising as tomorrow’s Euro group meeting approaches.

Meanwhile, Jim Langlands, Founder at FXCharts explains, "The indicators seem to suggest that we could head towards 1.0900 – and further soft US data could well assist such a move. In the meantime wait for any headlines coming from the EU meeting. Ahead of that, Asia seems to be confined to a 1.0800/50 range."

EUR/USD Technical Levels

The pair has an immediate resistance at 1.0848 (April 23 High) levels, above which gains could be extended to 1.0889 (April 8 High) levels. On the flip side, support is seen at 1.0768 (20-DMA) below which it could extend losses to 1.0700 levels.

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