EUR/USD drops to fresh daily lows under 1.1350

• EUR/USD erases gains, retreats to 1.1340, after finding resistance at the strong 1.1420 area. 
• The US dollar recovered ground across the board, DXY back to the beginning. 

The EUR/USD pair dropped further and printed a fresh daily low at 1.1345, making a sharp intraday reversal after hitting earlier today at  1.1419, the highest level since November 23. 

The retreat from the top took place amid a recovery of the US dollar across the board. The DXY rose back from the 1-week low it reached during the European session at 96.40, back to 96.85, erasing daily losses. The greenback strengthened despite a decline in the US 10-year bond yield and amid comments from New York Fed President Williams, who said that the economy was strong and supported further gradual rate hikes.

Despite the Italian budget drama, the situation in France and the beginning of the Brexit debate in the Parliament, price action during the last hours has been driven by the US dollar. 

EUR/USD Technical levels

To the downside, the immediate support could be seen at 1.1335/40 (uptrend line from last week lows), 1.1300/05 (Nov 30 low) and 1.1275 (Nov 27 low). On the upside, resistance levels might lie at 1.1360 followed by 1.1400 and 1.1420 (Nov 21, 23 and Dec 4 high).