EUR/USD at session lows near 1.0520 after US releases

The EUR/USD pair maintained its bearish bias and move closer to the 1.0500 psychological mark near multi-day lows following US economic releases.

Currently trading around 1.0520 region, the pair maintained its offered tone after data released from the US showed Core PCE index rising 1.7% y-o-y and 0.3% on monthly basis in January. Meanwhile, personal income came-in to show a 0.4% m-o-m rise and personal spending grew at a moderate pace of 0.2% m-o-m.

The data did little to hinder the greenback's strong up-surge on Wednesday, with the key US Dollar Index hitting daily peaks and fast approaching the 102.00 handle against the backdrop of growing prospects for an eventual Fed rate-hike action at its upcoming meeting in two-weeks.

Earlier on Wednesday, even upbeat data released from Germany - employment data and inflation print, and comments from ECB's Weidmann did little to provide any immediate respite, with the US Dollar dynamics being an exclusive driver of the pair’s downslide on Wednesday.

Next on tap would be the US ISM manufacturing PMI, in a short while from now, and speech by Dallas Fed President Robert Kaplan, later during NY session.

Technical levels to watch

A follow through selling pressure below 1.0500 mark, leading to a subsequent drop below 1.0480-75 support, would turn the pair vulnerable to continue drifting lower in the near-term, towards its next major support 1.0400 round figure mark. On the upside, any recovery above 1.0550-55 region might now confront strong resistance near 1.0575 level, above which a bout of short-covering could lift the pair back towards 1.0600 handle.