EUR/USD finding tough resistance through 1.08 handle, too far too soon?

Currently, EUR/USD is trading at 1.0793, up 0.22% on the day, having posted a daily high at 1.0830 and low at 1.0762.

EUR/USD has stabilised below the 1.08 handle after a slide from the aforementioned highs. The dollar is generally weak, and rightly so according to analysts at Bank of Tokyo Mitsubish: USD: negative momentum is warranted - BTMU

The euro is attracting safe haven demand and its funding currency status can give the bulls some mileage on the upside, however, while the hourly FXStreet OB/OS Index is showing neutral conditions, the FXStreet Trend Index which is strongly bearish and this could be too much too soon, especially while there is plenty of uncertainty around the EZ project.

Elsewhere, ECB's Praet was speaking in Berling and explained it will take time for inflation to stabilise. He was overall bullish but showed some concerns for the way the US could be headed under Trump and what the implications could be for the EZ project, but again, he was broadly bullish on the EU:  "The economy has now posted positive real GDP growth for 14 consecutive quarters. The unemployment rate is back to a single-digit figure. Economic sentiment is at the highest level recorded in almost 6 years. The monetary policy measures the ECB has taken over the past few years have contributed decisively to these positive developments."

EUR/USD levels

Short-term technicals are neutral while the EURUSD is firmer, although analysts at Scotiabank argued that gains are not especially well-supported by underlying trend oscillators which rather suggest the technical backdrop is range-bound at the moment. "We spot strong resistance still in the 1.0820/60 range (high-low, trend/retracement)."