EUR/USD fails to rise above 1.0500

EUR/USD staged a quick, short-lived rally to the 1.0500 area, but failed to regain the psychological level and pulled back over the last hours.

EUR/USD reached a high of 1.0499 on the back of weaker-than-expected US consumer income/spending data, but quickly lost steam and gave up over half a cent to the 1.0435 area. At time of writing, the pair is trading at 1.0443, still 0.21% above its opening price.

Data showed, personal spending rose 0.2% in November versus 0.3% expected while incomes were essentially unchanged in the same period, against 0.3% expected. Meanwhile, the personal consumption expenditures (PCE) price index, the Fed’s preferred gauge of inflation, was unchanged in November, after a 0.3% increase in October and rose 1.4% YoY.  

Earlier on the day, US reported gross domestic product expanded at an annual rate of 3.5% in the third quarter, up from 3.2% estimated last month while Orders for durable goods declined 4.6% in November, still above the 4.7% fall expected. 

EUR/USD technical levels

In terms of technical levels, short-term resistances are seen 1.0503/00 (psychological level), 1.0539 (Dec 15 high) and 1.0574 (21-day SMA). On the other hand, next supports could be found at 1.0381 (Dec 21 low), 1.0351 (2016 low, Dec 20), 1.0334 (Jan 2003 low) and 1.0300 (psychological level).