EUR/USD consolidates gains, remains near 2017 highs

EUR/USD reached during the American session 1.1251, the highest level since May 23 (when it reached 1.1267, the 2017 high). Then it pulled back modestly, finding support at 1.1225. 

Currently, it trades at 1.1235, up more than 50 pips for the day, the best performance since May 18. A weak US dollar, particularly against the European currencies boosted the EUR/USD. The greenback suffered from the rally in Treasuries, that sent the 10-year yield to 1-month lows under 2.20%. 

Data ahead

In the Eurozone tomorrow, the Markit Manufacturing PMI will be released. In the US, the ADP private employment report is due and also the PMI and ISM manufacturing, and jobless claims data. Traders will also get ready for Friday’s NFP. 

Technical outlook 

“The pair has recoup its bullish stance, with the price above a flat 20 SMA, in the 4 hours chart, but with the larger ones heading north far below it, and technical indicators losing upward strength, but holding near their daily highs”, said Valeria Bednarik, Chief Analyst at FXStreet. 

According to her, EUR/USD looks poised to extend its advance, although it would take an advance beyond 1.1265 to confirm such extension toward 1.1300 and beyond.

To the upside, resistance levels might be located at 1.1265/70 (2017 high) and then the 1.1300 handle. On the downside, support could be seen at 1.1225, 1.1190 (May 29 high) and 1.1160 (May 26 & 31 low).