EUR/USD digs in and extends rebound from 1.05

• EUR/USD clawed back further gains on Monday, adding back 0.65%.
• Despite near-term bullish momentum, Fiber remains buried deep in the bear zone.
• With another week of tepid economic data on the books, Euro remains exposed to market flows.

EUR/USD pared away further losses on Monday, rising nearly two-thirds of a percent as markets ease off the Greenback gas pedal and give the Euro a chance to come up for air. Except for a midweek appearance from European Central Bank (ECB) Christine Lagarde on Wednesday, the economic calendar remains tepid until Friday's global rolling release of Purchasing Managers Index (PMI) figures due on both sides of the pond.

Euro markets will be sent adrift of general market flows until Wednesday, when ECB President Lagarde appears on Wednesday to deliver the opening remarks at the ECB's Conference on Financial Stability and Macroprudential Policy. The ECB is currently caught between a rock and a hard place as European inflation continues to hold stickier than European policymakers had initially expected, and the broader European economy continues to tilt lopsided.

The rest of this week's economic calendar remains a tepid affair on both sides of the Atlantic, though Fiber traders will be keeping their heads low on Friday when S&P PMI business activity forecasts land during both the European and US market sessions. European Manufacturing PMI figures are expected to hold steady at 46.0 MoM, with the European Services PMI component forecast to rise to 51.8 from 51.6. On the US side, overall PMIs are broadly expected to rise, with Manufacturing expected to increase to 48.8 in November from 48.5, and Services expected to tick higher to 55.2 from 55.0.

EUR/USD price forecast

EUR/USD tilted into the bullish side on Monday, reaching for the 1.0600 handle after the pair dug in its heels late last week near 1.0500. The pair still remains buried deep in bear country, with price action stuck far below the 200-day Exponential Moving Average (EMA) at 1.0884.

Fiber found a meager bounce from its lowest prices in over a year, after falling near 6.5% from September's peaks just north of the 1.1200 handle. With the pair steeply off of its highs, a continued recovery is likely to run into technical resistance between 1.0700 and 1.0800.

EUR/USD daily chart