EUR/USD spikes through 1.0700 handle amid broad based USD sell-off

The greenback selling pressure has intensified in the past hour, pushing the EUR/USD pair to over one-month high beyond 1.0700 round figure mark.

The pair's near-term recovery move gained extra pace on Tuesday after a senior adviser to President-elect Donald Trump, Anthony Scaramucci, while speaking during a panel discussion at the World Economic Forum's annual meeting in Davos, raised concerns over rising US Dollar.

Moreover, growing uncertainty over Trump administration's proposed fiscal policies continues to fuel long-dollar unwinding trade, with the key US Dollar Index slammed below 101.0 handle, and assisted the pair to shrug-off disappointing reading on German ZEW economic sentiment index. 

Markets will keep a close eye on the UK PM Theresa May's speech on Brexit, which is expected to infuse a fresh bout of volatility in the FX market and could have a spillover effect on the major. 

Technical levels to watch

A follow through buying interest has the potential to continue boosting the pair further towards 1.0760-65 horizontal resistance, en-route its next major hurdle near 1.0800-1.0810 region. On the downside, 1.0675-70 area now becomes immediate support to defend below which the pair is likely to head back towards 50-day SMA, resistance turned support, near 1.0615-10 region.