Search ForexCrunch
  • EUR/USD failed again to rally further on top of 1.1400 but remains with the positive tone intact.  
  • Greenback tumbles, having worst performance in months.  

The EUR/USD pair continued to rise on Thursday and reached a fresh daily high at 1.1412 and then pulled back modestly, to 1.1395. The sharp decline of the US dollar across the board was the main driver of the EUR/USD rally.  

An improvement in risk appetite and probably some profit taking triggered a slide of the greenback. The US Dollar Index (DXY) reached yesterday at 97.20, the highest level since June 2017 and today is trading below 96.40, having the worst performance in weeks.  

US economic data released today included the Markit PMI and ISM PMI from the manufacturing sector. Both came in slightly below expectations. On Friday, the NFP is due.  

The euro is also higher against the Swiss franc but it continues to slide versus the pound. The decline of EUR/GBP contributed to limit the rally of EUR/USD.  

Levels to watch  

To the upside, the immediate resistance could be seen around daily highs at 1.1410/15, followed by 1.1430 (Oct 16 low / Oct 25 high) and 1.1465 (21-day simple moving average). On the downside, support levels might be located at 1.1375/80, 1.1355 and 1.1330. Today’s rally took place after EUR/USD found support yesterday at the 1.1300 area, that also capped the decline back in August. The mentioned area become a key support.