EUR/USD consolidates the recovery near 1.0640, ISM eyed

The EUR/USD pair is seen reversing a spike to daily tops, although remains well supported above 1.06 handle as we progress towards the US ISM non-manufacturing PMI release.

EUR/USD recedes to 20-DMA                                                                           

Currently, EUR/USD now drops -0.27% to 1.0636, having posted session highs at 1.0662 in the last hour. The main currency pair failed to sustain the renewed upticks and drifted slightly lower, as the US treasury yields picked-up significant strength over the last hour, and thus, provided fresh impetus to the USD bulls.

Further, a solid rebound seen in the European stocks also curbs the demand for the euro as a funding currency, therefore, keeping a lid on the prices.

The shared currency also stalls upside following the release of mixed economic data from the Eurozone, with the Sentix investor confidence missing estimates, while the retail sales data arrived above expectations. Moving on, focus remains on the upcoming US ISM services PMI and LMCI data due later in the American session.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0650 (psychological levels). A break beyond the last, doors will open for a test of 1.0685/90 (Nov 28 high/ 11-day high) and from there to 1.0720 (daily R2). On the flip side, the immediate support is placed at 1.0507 (multi-month low) below which 1.0456 (March 2015 low) and 1.0400 (zero figure) could be tested.