EUR/USD prints fresh daily highs above 1.1230 on US Dollar weakness

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The EUR/USD pair rose modestly during the American session and printed a fresh daily high at 1.1233. It is hovering near the top, recovering half of yesterday’s losses. 

A weaker US Dollar boosted the pair to the upside. A decline in US yields pushed the greenback to the downside. The 10-year stands at 2.07%, the lowest since July 11 while the DXY is down 0.22%. 

Data from the US today showed a decline in US housing starts and also in building permits to the lowest in two years. Housing starts fell 0.9% in June to a annual rate of 1.253 million units, below the 1.261 million expected. Building permits dropped 6.1% to a 1.220 million units in June, the lowest since May 2017. 

Equity prices in Wall Street era lower on Wednesday with the DOW JONES down 0.20% amid comments from US President Trump on the lack of progress in US-China trade negotiations. 

EUR/USD moving away from 1.1200 

From a technical perspective, the EUR/USD pair is rebounding from near the 1.1200 area, like what happened last week. On the upside, the next strong resistance is seen around 1.1245/50 and above attention would turn to the weekly top at 1.1280/85. A slide below 1.1200 would expose, last week lows at 1.1190 and point to a test of the critical support at 1.1180. 

 

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