EUR/USD backs away from highs

FXStreet (Córdoba) - The EUR/USD is correcting lower at the beginning of the American session after hitting a fresh weekly high underpinned by better-than-expected Eurozone PMI data.

The EUR/USD rallied half a cent and peaked at 1.3854. However, the pair to sustain at highs and pulled back toward 1.3830. At time of writing, the EUR/USD is trading at the 1.3835 zone, still 0.23% above its opening price. During the New York session data includes the Markit manufacturing PMI and new home sales data.

EUR/USD technical outlook

Valeria Bednarik, chief analyst at FXStreet notes that a break above 1.3860 should lead to an extension up to 1.3890 where the pair will fill the weekly opening gap left 2 weeks ago. "A break below 1.3825 should be highly discouraging for buyers, and some profit taking may force the pair down to 1.3780/90 area, probable floor for today".

Canada Retail Sales ex Autos (MoM) came in at 0.6% to beat forecasts (0.5%) in February

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