EUR/USD taps 1.0600 mark and retreats

The EUR/USD pair extended its recovery move from Wednesday's six week lows and momentarily rose above 1.0600 handle. 

The pair, however, quickly retreated from highs and reversed daily gains to currently trade around 1.0575-80 region amid generally directionless, subdued trading action on the last trading day of the week. 

Persistent greenback weakness, with the key US Dollar Index placed below 101.00 handle, helped the pair to build on to two-day old recovery momentum, just to run into some fresh offers around 1.0600 handle. This 1.0600 handle marks a short-term descending trend-line resistance, extending from Feb. monthly highs through Feb. 17 highs. 

Moreover, investors remain reluctant to buy Euro in wake of the ongoing political uncertainty in France and hence, preferred to take some profits off the table after 100-pips of up-move in three trading sessions. The pair remains on track to end in red for the third consecutive week.

Later during NA session, second tier US economic releases - New Home Sales and Revised UoM Consumer Sentiment index might provide some impetus for short-term traders.

Technical levels to watch

Subsequent retracement below 1.0565-60 area could drag the pair back towards 1.0530 horizontal support ahead of 1.0500 psychological mark. On the upside, 1.0600 handle remains important hurdle, which if cleared decisively might trigger a short-covering rally towards 1.0630 horizontal resistance, en-route its next resistance near 1.0660 level.