EUR/USD prints fresh multi-year high at 1.1871 as USD weakens

 After spending hours in a modest range around 1.1830, even after the ADP report, EUR/USD jumped to the upside and rose to 1.1871, the highest level since January 2015. Currently, it trades at 1.1860, consolidating gains as it continues to move toward 1.1900 at a slow pace. 

ADP data and revisions cause USD to gyrate

The recent rally was boosted by a decline of the US dollar across the board following comments from Loretta Mester, Cleveland Fed President. She mentioned that there is a risk of overheating if interest rates remain too low and added that three rate hikes per year are appropriate to avoid that. The Dollar Index dropped further to 92.54, hitting a fresh 1-year low. 

Fed's Mester: May take couple months to see uptick in U.S. prices

Technical levels 

EUR/USD continues to test the 1.1870 area. For the second time during the day, it is having difficulties breaking above that area. If it is able to hold on top of 1.1870, the euro could gain strength to rally toward 1.1900. The intraday bullish tone remains intact and that bias would be challenged with a slide below 1.1825 (20-hour moving average). 

To the upside, above daily highs, the next resistance levels could be seen at 1.1900 (psychological) and 1.1975 (Jan 5 & 6, 2015 high). On the flip side, support might lie at 1.1845 (Jul 31 high), 1.1815 (Aug 2 low) and 1.1790 (weekly low).