EUR/USD hits fresh highs but remains limited by 1.1780

EUR/USD bounced from 1.1730 and rose erasing losses. The pair even reached a fresh daily high at 1.1780. The area around the top capped the upside and at the moment of writing, it was trading at 1.1765/69, around the same level it closed yesterday. 

A resilient euro and a pullback of the US dollar pushed the pair to the upside during the last hours. The US Dollar Index reached earlier at 93.61, a fresh 1-week high but then retreated to 93.30. It moved off daily highs as Treasury yields remained near daily highs, and also as the Dow Jones index hit a new record high above 23,100.   At the same time, the euro rose to fresh highs versus the pound and the Swiss franc. 

US stocks hit fresh records, Dow cracks 23,000 mark

Most crosses of the currency market are moving in limited ranges on Wednesday. With no key economic reports due on the calendar, the decision on next Fed’s chair is gaining attention. US President Donald Trump said yesterday that he will decide soon on the next chairman. In Europe, Draghi’s speech today had no impact and focus starts pointing toward the next European Central Bank meeting scheduled for October 26. 

EUR/USD Levels to watch 

To the downside, immediate support is seen around the 20-hour moving average at 1.1760, followed by 1.1730 (daily low) and 1.1717 (Oct 9 low). On the upside, resistance might lie at 1.1780 (daily high), 1.1800/05 (Oct 13 low) and 1.1815/20 (Oct 16 high).