EUR/USD in a tight range near 1.0720

The demand for the single currency has lost some momentum on Wednesday, with EUR/USD receding from yesterday’s tops near 1.0740 and trading closer to 1.0720.

EUR/USD gives away some gains on USD-bids

The selling bias around the buck has subsided somewhat today, prompting spot to fade part of Tuesday’s strong rally although it still manages well to keep the trade above the recently regained 1.0700 handle.

Other than USD-dynamics, the upcoming French elections are poised to be a key driver of the pair’s price action in the very near term. Latest election polls by Le Monde/Cevipof place candidate E.Macron leading with 23% of vote intention vs. M.Le Pen’s 22.5%. However, Macron is seen winning a most-likely second round 61%-39%.

In the data space, EMU’s final inflation figures for the month of March are due seconded by February’s Trade Balance results in the region. Across the pond, the weekly report on crude oil inventories by the EIA is due later in the NA session along with the speech by Boston Fed E.Rosengren (2019 voter, hawkish) and the Fed’s Beige Book.

EUR/USD levels to watch

At the moment the pair is losing 0.05% at 1.0727 and a break below 1.0689 (20-day sma) would target 1.0660 (55-day sma) en route to 1.0635 (low Apr.18). On the upside, the initial resistance is located at 1.0737 (high Apr.18) followed by 1.0843 (200-day sma) and finally 1.0905 (high Mar.27).