EUR/USD gives up ground, back below 1.1200

EUR/USD spiked to fresh daily highs at the beginning of the American session but failed to hold above the 1.12 mark and gave up some of its gains.

EUR/USD climbed to a peak of 1.1216 despite better-than-expected US data, but quickly retraced half of its spike, receding to the 1.1170 zone. At time of writing, the pair is trading at 1.1183, still up 0.26% on the day.

EUR/USD has fallen sharply throughout May, having lost more than 400 pips from highs at 1.1615 amid increasing bets the Fed will raise rates sooner-than-later. Focus turns now to Fed Chair Yellen speech, scheduled for Friday, as investors look for clues over the bank's next move.

EUR/USD technical levels

In terms of technical levels, immediate supports are seen at 1.1127 (May 26 low), 1.1103/00 (200-day SMA/psychological level), 1.1057 (Mar 16 low) and 1.1024 (Mar 7 low). On the other hand, resistances line up at 1.1226 (May 24 high) and 1.1315 (50-day SMA/May 18 high) ahead of 1.1348 (May 17 high).