EUR/USD bounces-off from 2-1/2 yr lows, hits fresh daily highs

FXStreet (Mumbai) - The single currency rebounded against the US dollar from two and a half year lows seen in the Asian session as traders closed short positions in a bout of profit booking after the recent weakness.

Currently, the EUR/USD pair trades near fresh daily highs at 1.2186 levels, up 0.21% on the day, reversing from 2-1/2 year lows of 1.2124 hit in the Asian session. The Euro bounced-back against the US dollar after the greenback retreated from fresh five-year high levels. The dollar index, which measures the greenback’s value against six major currencies, retreated slightly from multi-year high of 90.66 levels and trades now at 90.27, down -0.30% on the day.

The single currency is expected to remain under pressured versus the US dollar on lingering Greek political woes.

EUR/USD Technical Levels

The pair has an immediate resistance at 1.2162 (Today’s High) levels, above which gains could be extended to 1.2184 (Dec 28 High) levels. On the flip side, support is seen at 1.21 levels, below which it could extend losses to 1.2041 (July 2012) levels.

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