EUR/USD better bid above 1.0500 in New Year trade

Having ended 2016 on a bearish note, the EUR/USD pair kicked-off the first trading day of 2017 on a slightly upbeat tone amid continued weakness in the greenback across the board.

Although it remains to be seen whether the shared currency manages to cling onto gain this Monday, as holiday-thinned trades are likely to persist amid a New Year holiday observed in almost all major markets, except for Europe.

Hence, focus now shifts towards the final manufacturing PMI reports lined up for release from the Euroland in the day ahead.

Heading into 2017, Trump’s fiscal policies and reforms, Fed’s rate hike outlook and geo-political concerns surrounding the 19-nation bloc are expected to remain key themes to watch out for.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0532 (2017 high/ daily R1). A break beyond the last, doors will open for a test of 1.0550 (psychological levels) and from there to 1.0600 (zero figure). On the flip side, the immediate support is placed at 1.0500 (round number) below which 1.0473 (10-DMA) and 1.0450 (key support) could be tested.