EUR/USD fades the advance to 1.1240

EUR/USD has quickly abandoned the area of session highs near 1.1240, returning to the current 1.1200 neighbourhood.

EUR/USD surrendered gains on US data

The pair has given away part of its daily gains after US Existing Home Sales have surprised markets to the upside during April, expanding 1.7% to 5.45 million units. The results add to the recent strong releases in the US economy, reinforcing market expectations of a Fed rate hike next month in spite of today’s softer tone in the greenback.

Anyway, spot keeps the trade in the area of multi-week troughs in the low-1.1200s against the backdrop of renewed sentiment towards the USD, losing over four cents since YTD peaks at 1.1615 seen in early May.

EUR/USD levels to watch

The pair is now gaining 0.05% at 1.1208 and a break below 1.1154 (100-day sma) would target 1.1142 (low Mar.24) en route to 1.1101 (200-day sma). On the other hand, the initial hurdle aligns at 1.1294 (55-day sma) followed by 1.1357 (20-day sma) and finally1.1448 (high May 11).