EUR/USD retreats from 3-weeks highs to 1.1885

• Euro losses momentum above 1.1900. 
• US Dollar showing no clear direction on another low volume session. 

The EUR/USD pair peaked at 1.1909, the highest level in three weeks but then lost strength and pulled, trimming gains. It dropped to 1.1885 and as of writing it was hovering slightly below 1.1900, headed toward the highest close since December 1. 

The move to the upside of the pair was supported by a slide of the US dollar across the board. The greenback is moving without a clear direction. It recovered strength against European currencies, while at the same time it remained at lows versus some commodity currencies. The US Dollar Index moved off lows but it was still in negative territory for the day. 

US economic data had no impact. Pending home sales rose 0.2% in November against expectations of a 0.5% slide while the Conference Board consumer confidence index fell to 122.1 (vs 128). 

Price action continues to be limited on a quiet session. Among day’s movers is gold that it's rising for the seventh day in a row. 

Levels to watch 

EUR/USD continues to hold above the key level of 1.1830/50. Only a clear retreat below would weaken the bullish tone. The area around 1.1815 (20-day moving average) is another strong support. 

To the upside, the euro needs to consolidate significantly above 1.1900 in order to gain more momentum. Resistance levels on top might lie at 1.1940 (Dec 1 high) and 1.1960 (Nov highs).