EUR/USD again rejected near 1.0620 region, surrenders daily gains

The EUR/USD pair once again faced rejection near 1.0620 strong horizontal resistance and is now headed toward the lower end of daily trading range.

Currently trading around 1.05780 region, testing session low, the pair initially built on Monday's up-move and jumped to the highest level since mid-December. The up-move, however, turned out to be short-lived and the pair continued with its struggle to sustain strength above 1.0600 handle. 

Renewed greenback buying interest, with the key US Dollar Index reversing majority of its early losses, and attempting to regain traction, seems to be the key driver of the pair's retracement move from 4-week high level of 1.0627. 

With a relatively thin US economic docket, featuring the only release of JOLTS job openings, the pair's price action on Tuesday is pointing towards repositioning ahead of the President-elect Donald Trump's first news conference on Wednesday. 

Technical levels to watch

Rejection from an important horizontal resistance, and a subsequent break below 1.0550 immediate support, would negate possibilities of any near-term recovery and drag the pair back towards 1.0500 psychological mark, en-route 1.0470-65 support area.

On the flip side, momentum back above 1.0600 handle might continue to confront strong resistance near 1.0620 region. Hence, a convincing break through this strong resistance should now trigger a sharp short-covering rally and lift the pair beyond 50-day SMA immediate hurdle near 1.0650-55 region and 1.0700 handle, towards testing its next major hurdle near 1.0765-70 region.