EUR/USD: Short-squeeze takes a breather, dips below 1.06

The short-squeeze appears to have come to a halt in Asia on account of caution ahead of the US non-farm payrolls release.

The EUR/USD pair clocked a high of 1.0613 earlier today before falling to 1.0575 levels.

Data heavy day ahead

German retail sales are seen falling 0.4% m/m in November. Meanwhile, factory orders are expected to drop 2.3% m/m in November.

Later in the day, Eurozone economic sentiment indices are scheduled for releases. Finally, the all important US non-farm payrolls figure, wage growth number and unemployment rate will hit the wires.

EUR/USD Technical Levels

A break above 1.0613 (session high) would open doors for 1.0651 (50-DMA), above which the psychological level of 1.07 could be put to test. On the other hand, a breakdown of support at 1.0575 (hourly chart support) would open the doors to 1.0505 (hourly 50-MA) and 1.0475 (hourly 200-MA).