The US labour market data for February released last Friday outperformed. Contrasting with the better-than-expected labour market data, the dollar index plunged more than 70 points, hitting a one-and-a-half-week low of 101.16 after the release of the data, due to profit-taking pressure. As markets have priced in the expectations for a March rate hike since February.
The fall of the dollar helped EUR/USD rally more than 100 points, hitting the highest level of 1.0713 since 8th February.
This morning EUR/USD pulled back as trading around the significant resistance level at 1.0700, where the selling pressure is heavy.
The 4 hourly Stochastic Oscillator is around 80, suggesting a further retracement.
The resistance level is at 1.0685, followed by 1.0700 and 1.0725.
The support line is at 1.0670, followed by 1.0655 and 1.0630.
The European Central Bank president Mario Draghi is scheduled to speak later today at 13:30 GMT. Last Thursday at the ECB press conference, Draghi gave a positive economic outlook, however he stated that QE will run until the ECB see a sustained pickup in inflation, the ECB would keep interest rates low.
Tomorrow we will see the release of German CPI for Feb, at 07:00 GMT, and Eurozone Industrial Production for January, at 10:00 GMT. It will likely influence the strength of the Euro.