EUR/USD fails ahead of 1.10 mark, retreats after hitting fresh 6-month tops

Having risen to a fresh multi-month high near 1.0990 level, the EUR/USD pair witnessed some profit taking and retreated around 25-pips from session tops. 

The pair's latest leg of pull-back lacked any fundamental drivers and thus, would still be seen as a consolidative pull-back, following yesterday's strong up-surge of over 100-pips from sub-1.0900 level and slightly near-term overbought conditions. 

The pair on Thursday surged through mid-1.0900s on increasing likelihood of Emmanuel Macron's victory at the runoff vote of the French Presidential election on Sunday. Moreover, with the US Dollar fading FOMC-led recovery and dropping to fresh yealy lows, possibilities of stops being triggered could have aggravated the up-move and collaborated to the pair's strong up-surge to fresh post-US election highs.  

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Investors, however, seems inclined to take some profits off the table and refrain from placing fresh bets / carrying large positions heading into the keenly watched non-farm payrolls data, due for release later during the NA session, and before the second round in France is over.

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Technical levels to watch

A follow through retracement now seems to find immediate support at an important resistance break point near mid-1.0900s, which if broken might prompt additional profit-taking slide towards the 1.0900 handle. On the flip side, the key 1.1000 psychological mark might act as immediate hurdle, but major upside resistance is now pegged near 1.1025-30 region.