EUR/USD testing 3-month highs near 1.1365

FXStreet (Mumbai) - The shared currency advanced to fresh session highs versus its American counterpart in the early European trades, pushing EUR/USD towards 1.14 barrier, largely as the US dollar turned back in red, after a brief recovery in Asia, dragged down by downbeat ADP jobs figures and Fed chair Janet Yellen's comments.

EUR/USD extends beyond 1.13

The EUR/USD trades 0.14% higher at fresh session highs at 1.1365, eyeing fresh three months highs beyond 1.1373. EUR/USD gained momentum this morning, after a choppy trend seen in Asia, as the greenback resumes its downside bias, as USD bulls remain disappointed by a miss on ADP employment report which heightened nervousness ahead of Friday’s NFP.

Moreover, rising German bond yields also continues to lend support to the shared currency, driving EUR/USD higher to three month highs. Greece headlines continue to remain in focus, despite a EUR200 million loan instalment to IMF yesterday, ahead of Monday’s Euro Group meeting.

Later in the day, investors will focus on German Factory Orders, anticipated to grow 1.5% on a monthly basis, which might give the euro another push. While in the US session, there are initial jobless claims, with a consensus of a rise back to 279,000.

EUR/USD Technical Levels

The pair has an immediate resistance at 1.1373 (May 6 High) levels, above which gains could be extended to 1.1400 levels. On the flip side, support is seen at 1.1325 (Today’s Low) below which it could extend losses to 1.1300 levels.

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