EUR/USD Price Analysis: Fed-inspired upside loses steam near 1.0650

• EUR/USD turns south again on USD uptick, German data miss.
• EUR bears fight back control amid a bearish technical structure.
• The pair needs to recapture 1.0650 convincingly to affirm a turnaroun.

EUR/USD is tacking 1.0600, in a renewed selling wave seen across the fx board, as the US dollar attempts a bounce after the massive sell-off triggered by a less hawkish Fed stance.

The Fed vapored out any hopes for a 75 bps June rate hike smashing the dollar alongside the Treasury yields, allowing EUR/USD to stage a sold recovery through the 1.0600 barrier.

The latest cautious remarks from the ECB policymaker Fabio Panetta combined with disappointing German Factory Orders data collaborate with the latest leg down in the pair. The EU embargo on the Russian oil also keeps EUR bulls on the edge.

The focus now shifts towards the BOE interest rate decision for any EUR/GBP cross-driven impact on the shared currency. Meanwhile, Friday’s US NFP release will be the next event risk for the major.

As observed on the daily chart, EUR/USD’s immediate upside remains capped just below the April 27 high of 1.0654.

Scaling the latter is critical to unleashing the additional recovery towards the bearish 21-Daily Moving Average (DMA) at 1.0725.

Ahead of that, however, the 1.0700 round figure will get challenged.

EUR/USD: Daily chart

The recovery, however, appears short-lived, as the 14-day Relative Strength Index (RSI) still lurks below the midline, currently pointing south.

The immediate comfort for EUR bulls is aligned at the May 3 high near 1.0588, below which the 1.0550 psychological will be put at risk once again.

Sellers will then gear up for a fresh drop towards the 1.0500 key figure.

EUR/USD: Additional levels to consider