EUR/USD reaches fresh highs but lacks follow-through

By FXStreet FXStreet (Córdoba) – EUR/USD consolidates near daily highs following a brief phase of hesitation, as the dollar retraces some of yesterday’s gains weighed by a below-expectations US GDP reading.

EUR/USD dropped to a session low of 1.0924, also weighed by soft German inflation figures, but quickly regained the upside and climbed to a fresh peak of 1.0985. However, the advance lacked follow-through, leaving EUR/USD around 1.0960, still up 0.36% on the day.

USD helped by the Fed

The dollar strengthened sharply across the board on Wednesday, dragging EUR/USD to a 2 ½-month low of 1.0896, after the Federal Reserve said it will determine if it is appropriate to raise rates “at its next meeting”. The Fed also removed from the statement comments regarding global developments potentially restraining economic activity and inflation, although it acknowledged that the “pace of job gains slowed”.

EUR/USD supports & resistances

In terms of technical levels, a clear break above 1.0995 (Oct 23 low/former support level) would pave the way toward 1.1095 (Oct 28 high) and then 1.1110 (200-day SMA). On the other hand, supports might be encountered at 1.0847 (Aug monthly low), 1.0808 (July monthly low) and then 1.0784 (Apr 24 low).
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Source:: FX Street