EUR/USD recovery capped by 1.0480 area

EUR/USD has been on recovery mode on Thursday, after falling below 1.0400 the previous day, although the bounce was capped once again at the 1.0480 area.

EUR/USD feel to a low of 1.0371 on Wednesday but bears lacked follow through to send the shared currency closer to multi.year lows and instead, it bounced. EUR/USD climbed to a high of 1.0479, matching yesterday’s peak, but once again failed to clear that level.

At time of writing, EUR/USD is trading at 1.0457, up 0.46% on the day amid holiday-thinned volume. On the data front, US is due to release jobless claims data, November’s wholesales inventories and goods trade balance.

EUR/USD levels to watch

In terms of technical levels, short-term resistances are seen 1.0479 (Dec 28 & 29 highs), 1.0499/1.0500 (Dec 22 high/psychological level), 1.0539 (Dec 15 high) and 1.0560 (21-day SMA). On the other hand, supports could be faced 1.0371 (Dec 28 low) and 1.0351 (2016 low, Dec 20),  1.0334 (Jan 2003 low) and 1.0300 (psychological level).