EUR/USD sticks to EZ PMI-led gains, House vote in focus
|The EUR/USD pair held on to upbeat Euro-zone PMIs led gains but struggled to extend the up-move further beyond 7-week tops touched on Wednesday.
Today's release of strong flash Euro-zone PMI prints helped the pair to recover early losses to daily low near 1.0760 level. Adding to this, a fresh wave of greenback selling pressure during mid-European session, with the key US Dollar Index reversing early gains and retreating back closer to multi-week lows, provided an additional boost.
The pair surged through the 1.0800 handle and refreshed session tops near 1.0815 region, albeit failed to extend the momentum beyond 1.0825 resistance, marking 50% Fibonacci retracement level of 1.1300-1.0341 downslide. This 1.0825-30 resistance also coincides with Feb. monthly high and also nearing early Dec. 2016 swing high.
With the key Euro-zone PMI numbers out of the way, traders now seem to wait for the release of durable goods order from the US before the key House vote on Trump's healthcare legislation before committing for the pair's near-term trajectory.
• US: Durable goods order and Fed speak in focus – TDS
Technical outlook
Valeria Bednarik, Chief Analyst at FXStreet writes, "the level to surpass is 1.0828, February high, as a break above it should favor additional advances up to 1.0870, December monthly high. A weekly close around this last should open doors for further advances towards 1.1000 during the upcoming week. The 1.0760 is the immediate support, followed by 1.0730 and the 1.0700 region. Only below this last, the dollar will regain momentum against its European rival."
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