EUR/USD eases from highs post-US ISM, near 1.0550

EUR/USD has faded the initial spike to session tops above 1.0570 and has retruned to the 1.0560/50 band ahead of the speech by Chair J.Yellen.

EUR/USD offered post-data, looks to Yellen

The pair met some selling pressure after US ISM Non-manufacturing has surprised markets to the upside today, ticking higher to 57.6 during last month vs. 56.5 initially estimated and up from January’s 56.5.

EUR saw its demand accelerated today after an election poll from agency Odoxa placed presidential candidate E.Macron leading the vote intentions in France with 27%, followed by far-right candidate M.Le Pen with 25.5%.

In addition, the profit taking sentiment around the buck saw the US Dollar Index abandoning the area of recent highs above the 102.00 handle and retreating to fresh lows near 101.70.

Further buying interest in spot also came from EUR/GBP, which remains near daily highs in response to a sharp sell off in the Sterling.

Later in the NA session, the speech by Chief Janet Yellen on ‘Economic Outlook’ will be the salient event, seconded by speeches by FOMC’s J.Powell (permanent voter, centrist) and Vice Chairman S.Fischer (permanent voter, centrist).

EUR/USD levels to watch

At the moment the pair is up 0.41% at 1.0549 facing the next resistance at 1.0574 (high Mar.2) seconded by 1.0595 (55-day sma) and finally 1.0604 (20-day sma). On the downside, a break below 1.0492 (low Mar.2/Feb.22) would target 1.0452 (low Jan.11) en route to 1.0339 (2017 low Jan.3).