EUR/USD spikes to 1-week highs after personal spending/income data

EUR/USD gathered fresh momentum and accelerated from daily lows to fresh 1-week highs as the dollar turned lower following weaker-than-expected consumer income/spending data.

EUR/USD bounced from a post-GDP low of 1.0428 and overshot previous highs to test the 1.0500 area. With a high made at 1.0499, the pair found resistance and pulled back to currently trade at 1.0483, still up 0.59% on the day and on track to post its first weekly gain in three.

Latest string of data showed personal spending rose 0.2% in November versus 0.3% expected while incomes were essentially unchanged in the same period, against 0.3% expected. Meanwhile, the personal consumption expenditures (PCE) price index, the Fed’s preferred gauge of inflation, was unchanged in November, after a 0.3% increase in October and rose 1.4% YoY.     

EUR/USD technical levels

In terms of technical levels, short-term resistances are seen 1.0503/00 (psychological level), 1.0539 (Dec 15 high) and 1.0574 (21-day SMA). On the other hand, next supports could be found at 1.0381 (Dec 21 low), 1.0351 (2016 low, Dec 20), 1.0334 (Jan 2003 low) and 1.0300 (psychological level).