EUR/USD sideways below 1.1700, as US dollar losses momentum

• EUR/USD down after a 3-day rally, corrects lower from highest since June 14.
• US Dollar  hold to gains across the board but off daily highs.

The EUR/USD pair is moving sideways between 1.1650 and 1.1680, consolidating modest daily losses. The pair dropped earlier on the back of a correction of the US Dollar across the board and then it was unable to erase losses.

The greenback gained ground but after the beginning of the US session lost strength and pulled back, moving off daily highs as equity prices in the US stabilized and amid a quiet bond market. EUR/USD is falling after rising during the previous three trading days. It peaked today on Asian hours at 1.1719, highest since June 14.

Regarding data, in the US the S&P/Case Shiller Home Price Index rose 6.6% from a year ago in April (below the 6.8% expected), the Richmond Fed Manufacturing Index came in in at 20 above the 16 of market consensus while the Conference Board’s consumer confidence index for June dropped to 126.4 from the upwardly revised 128.8 reported previously.

EUR/USD Short-term levels to watch

To the upside, the immediate resistance is seen at 1.1680/85 area, followed by 1.1700 and 1.1720 (Jun 26 high). On the downside,   support levels might be located at 1.1650 (Jun 26 low), 1.1595 and 1.1540 (Jun 15 low).