EUR/USD hovers below 1.0400

EUR/USD came under renewed pressure on Wednesday and fell back below the 1.0400 level, approaching 2016 lows scored last week.

After several sessions of mild recoveries, USD resumed the advance and dragged EUR/USD to a low of 1.0384 in recent dealings. At time of writing, EUR/USD is trading at 1.0389, down 0.6% on the day.

On the data front, data showed US pending home sales index fell 2.5% in November to its lowest level since January, against expectations of a 0.5% rise. While data briefly tempered USD gains, the pair quickly turned back south.

EUR/USD levels to watch

In terms of technical levels, next supports could be found at 1.0381 (Dec 21 low) and 1.0351 (2016 low, Dec 20),  1.0334 (Jan 2003 low) and 1.0300 (psychological level).  On the flip side, resistances are seen at 1.0479 (Dec 28 high), 1.0499/1.0500 (Dec 22 high/psychological level), 1.0539 (Dec 15 high) and 1.0560 (21-day SMA).