EUR/USD hovers near 1.09 after biggest single-day drop in one-month

• EUR/USD registered biggest daily drop in over a month on Monday. 
• Easing of lockdown measures in Germany could support the single currency.
• Technical charts indicate Monday's high is the level to beat for the bulls.

EUR/USD is trading in a sideways manner around 1.09 on Tuesday, having dropped by 0.67% on Monday. That was the biggest single-day percentage drop since April 2. 

Focus on headlines from Germany

Having allowed smaller shops to go back to business, Germany's state premiers will probably agree on measures to further ease coronavirus restrictions in a teleconference with Chacellor Merkel, scheduled on Wednesday, according to Reuters. The state premiers will likely allow large shopsto open from May 11, source told Reuters. 

The easing of lockdown measures may put a bid under the common currency in Europe. On the data front, the Eurozone Producer Price Index for March is scheduled for release at 09:00 GMT. The single currency may also take cues from the European commissions economic forecasts. speech by the German Bundesbank President Weidmann and ECB's Mersch. 

The risk sentiment also appears to have stabilized as evidenced from the 0.5% rise in the S&P 500 futures and a 6% gain in the West Texas Intermediate crude. 

So far, however, the dollar has remained bid, keeping EUR/USD near 1.09, as noted earlier. From a technical perspective, Monday's bearish marubozu candle has opened the doors for a deeper toward 1.08. A close above Friday's high of 1.1019 is needed to put the bulls back into the driver's seat. 

Technical levels