The euro gained momentum against the US dollar and managed to erased losses during the American session. The greenback lost strength across the board and pushed EUR/USD back above 1.0850.
Earlier today, after the release of US jobless claims and PPI data, the pair bottomed at 1.0838, the lowest level since April 24. From the lows it bounced to the upside and rose to 1.0875.
The pair stabilized and it has been hovering around 1.0870, marginally higher for the day, still close to the 1.0830/50 support area, near the lowest level in two weeks.
Levels to watch
On the upside, resistance levels might be located at 1.0895 (daily high), 1.0915 (May 8 low) and 1.0950 (Apr 25 & 26 high). On the flip side, support might lie at 1.0840 (daily low), 1.0775/80 (Apr 20 high) and 1.0740.
“The EUR/USD pair traded dangerously close to 1.0820, a critical support given that the level represents the 50% retracement of the post US-election slump and is also the lowest of these last three weeks. Should the price accelerate below it, there’s a good chance that the pair will finally fill the weekly opening gap left a couple of weeks ago in the 1.0730 region”, warned Valeria Bednarik, Chief Analyst from FXStreet.