EUR/USD recovery loses momentum

EUR/USD lost upward momentum after reaching the 1.0450 area and pulled back a few pips over the last hours.

EUR/USD has been on recovery mode on Wednesday as the greenback faced profit-taking across the board after hitting multi-year highs the previous day However, the dollar regained ground and dragged EUR/USD back to 1.0420 following the release of better-than-expected existing home sales data.

Sales of existing homes rose 0.7% in November  to a seasonally adjusted annual rate of 5.61 million versus 5.54 million expected. That was the strongest monthly reading since February 2007.

EUR/USD levels to consider

At time of writing, EUR/USD is trading at 1.0425, still up 0.37% on the day. In terms of technical levels, short-term resistances are seen 1.0479 (Dec 19 high), 1.0503/00 (10-day SMA/psychological level), 1.0539 (Dec 15 high). On the other hand, next supports could be found at 1.0351 (2016 low, Dec 20), 1.0334 (Jan 2003 low) and 1.0300 (psychological level).