EUR/USD hits fresh highs, remains around 1.1050

EUR/USD printed a fresh daily high at 1.1052, marginally above the previous highs. The pair continues to trade near the highs but still unable to rally above 1.1050. A retreat of the US dollar across the board favored a rebound in the EUR/USD pair that climbed from 2-month lows (1.0985), erasing daily losses. 

Greenback is showing weakness in the market during the second half of the American session as US stocks moved off daily lows. The Dow Jones index dropped to 4-week lows under 18,000 but is now above 18,100. The improvement in risk appetite lowered the demand for the US dollar and also the Japanese Yen. 

Traders today continue to digest yesterday’s FOMC minutes. Data on Thursday showed that initial jobless claims dropped toward to the lowest in decades, signaling that the labor market remains solid. Tomorrow will be the busiest day regarding US data with the release of retail sales and wholesale inflation. 

In the Eurozone, economic data today showed that the German CPI rose 0.1% in September, matching expectations. On Friday, Eurozone trade data will be released.     

Technical levels 

Currently the pair is trading at 1.1050, 0.40% above yesterday’s closing price. Immediate supports are seen at 1.1025 (20-hour moving average), 1.1000 (psychological level) and 1.0960 (Jul 27 low). On the flip side, resistances could be located at 1.1055, 1.1067 (Oct 12 high), 1.1100 (psychological) and 1.1120 (Sep 20 low).