After clinching fresh tops near 1.0720 in early trade, EUR/USD has now returned to the 1.0675/70 band.

EUR/USD boosted by USD-selling

Spot has advanced to fresh multi-week tops beyond 1.0700 the figure, as the increasing selling tone surrounding the buck continues to prop up the rebound in the riskier assets.

However, the bull run seems to have lost momentum in light of the strong rebound in GBP, which has in turn triggered a sharp sell off in EUR/GBP following the earlier speech by UK’s PM Theresa May.

Previously, mixed ZEW results in Germany and the euro area passed largely unnoticed, while the US Empire State manufacturing index missed estimates for the month of January, adding further downside pressure to USD.

EUR/USD levels to watch

The pair is now gaining 0.78% at 1.0684 and a break above 1.0719 (high Jan.17) would target 1.0798 (high Dec.5) en route to 1.0873 (high Dec.8). On the other hand, the next support lines up at 1.0577 (low Jan.16) followed by 1.0259 (20-day sma) and finally 1.0452 (low Jan.11).