EUR/USD breaches 1.0700 ahead of German data

The minor-recover seen in the EUR/USD pair lost legs just below 20-DMA, knocking-off the rate briefly below 1.07 handle.

EUR/USD looks vulnerable

Currently, the spot drops -0.44% to hover near fresh session lows of 1.0695, as the bears fight back control amid renewing buying interest seen behind the greenback versus its major rivals. The USD index rises +0.32% to 100.17, having posted daily tops at 100.21.

The major now looks forward to the German industrial production release due out shortly, with markets expecting a slight deterioration in the industrial activity in December last year.

Analysts at TDS note, “After the softer shipments figures in yesterday’s German factory orders report, we see substantial downside risks to today’s IP data for December. Markets are looking for a +0.3% gain, but we expect to see a decline of as much as -2.5% instead.”

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0757 (5-DMA). A break beyond the last, doors will open for a test of 1.0800 (round number) and from there to 1.0814 (8-week high). On the flip side, the immediate support is placed at 1.0681 (Jan 31 low) below which 1.0655 (Jan 26 low) and 1.0617 (Jan 30 low) could be tested.