EUR/USD Forecast: Euro needs to clear 1.0800 to extend recovery

• EUR/USD recovered above 1.0750 in the early European session on Tuesday.
• The pair’s bearish bias remains intact despite the rebound.
• Buyers could show interest in case Euro stabilizes above 1.0800.

EUR/USD staged a technical correction and rose above 1.0750 early Tuesday after touching its weakest level since mid-November near 1.0720 on Monday. The pair’s near-term technical outlook is yet to point to a bullish tilt.

The US Dollar (USD) continued to gather strength against its rivals on Monday as the benchmark 10-year US Treasury bond yield stretched higher on growing expectations about the Federal Reserve (Fed) delaying the policy pivot following the upbeat labor market data.

The modest improvement seen in risk sentiment makes it difficult for the USD to outperform its rivals and helps EUR/USD edge higher. Meanwhile, the data from Germany showed that Factory Orders rose 8.9% (seasonally adjusted) on a monthly basis in December and further supported the euro.