EUR/USD retreats towards 1.0500 on USD rebound ahead of key data, ECB’s Lagarde

• EUR/USD holds lower ground near intraday bottom after the first weekly gain in four.
• Firmer yields, fears of higher rate hike underpin US dollar rebound.
• Concerning surrounding Russia, China adds strength to the greenback’s safe-haven demand.
• US Durable Goods Orders, speech from ECB’s Lagarde eyed for fresh impulse.

EUR/USD remains pressured around daily lows near 1.0550, after snapping the three-week uptrend, as traders reassess the previous recovery ahead of the key data/events. That said, the chatters surrounding Russia, China and the central banks’ aggression also seem to weigh on the quote during early Monday morning in Europe.

Market sentiment dwindles even as the S&P 500 Futures print mild gains, which in turn directs traders towards the US dollar due to its safe-haven demand. The reason could be linked to the market’s reassessment of the previous week’s cautious optimism, as well as fresh fears surrounding Moscow and Beijing.

It’s worth noting that the comments from a German Official suggesting the Group of Seven (G7) leaders’ preparedness for taking moves again Russia's oil and gold seem to recently weigh on the risk appetite. On the same line were comments from the White House saying, “The US is confident that NATO's new strategy document will include "strong" language on China, a White House official said on Sunday, adding that negotiations on how to refer to Beijing were still underway,” per the news from Reuters.

Amid these plays, the S&P 500 Futures remain firmer around 3,920, up 0.20% intraday by the press time, whereas the US 10-year Treasury yields rise three basis points (bps) to around 3.15% after posting the first weekly loss in four.

Also contributing to the EUR/USD pair’s weakness could be the fresh chatters surrounding economic weakness in China and the US, not to forget Australia.

Additionally, the market’s cautious sentiment ahead of the US Durable Goods Orders and Pending Home Sales for May, as well as a speech from European Central Bank (ECB) President Christine Lagarde exerts additional downside pressure on the quote. Forecasts suggest that the US Durable Goods Orders for May, expected 0.1% versus 0.5% prior, as well as the Pending Home Sales, expected -2.0% versus -3.9% prior.

Technical analysis

EUR/USD sellers need validation from the convergence of the 10-DMA and a one-week-old support line, around 1.0520. Alternatively, 21-DMA and the 50-DMA, around 1.0600 by the press time, restrict the short-term recovery of the pair ahead of a downward sloping resistance line from February 10, near 1.0635.