EUR/USD reaches fresh daily highs, but lacks follow through

EUR/USD stretched higher and made a fresh daily peak during the New York session, as the greenback continued to give ground versus most competitors.

EUR/USD reached a peak of 1.0625, extending recovery from a fresh 2016 low scored yesterday at 1.0519, but lacked follow through and quickly returned to the 1.0600 area. At time of writing, EUR/USD is trading at 1.0605, up 0.54% on the day.

Majors continue to trade within recent ranges, with the dollar weaker across the board as investors take profit following sharp gains, while volume remains thin following Thursday’s Thanksgiving holiday.

Data showed that Markit Flash US Services PMI Business Activity Index came in at 54.7 in November, fractionally from 54.8 in October and expectations. However, this was the second-strongest seen over the past 12 months and the ninth consecutive  month of expansion for the sector.

EUR/USD levels to watch

As for technical levels, immediate resistances could be found at 1.0632 (10-day SMA), 1.0643 (Nov 23 high), and 1.0700 (psychological level). On the flip side, supports seen at 1.0519 (2016 low Nov 24), 1.0500 (Dec 3 2015 low/psychological level) and 1.0470 (Mar 16 2015 low).

To learn more about this topic, check our video analysis:

EURUSD from Tip TV Productions on Vimeo.