EUR/USD extends the recovery to 1.1040

The softer tone in the greenback is helping EUR/USD to clinch fresh highs in the 1.1035/40 band on Thursday.

EUR/USD now looks to US data

EUR has managed to revert the initial bearishness that dragged spot to fresh 3-month lows in the vicinity of 1.0980, as the recent buying sentiment around the greenback has ebbed somewhat today.

The rally in USD is losing some upside momentum today after the US Dollar Index clinched fresh multi-month tops beyond 98.00 the figure during overnight trade. The buck remains well supported by rising speculations of a rate hike by the Federal Reserve at its meeting in December, while CME Group’s FedWatch tool now signals a probability of such scenario at 64%.

In the US docket, the usual weekly report on the labour market is due later along with Export/Import Prices and the speech by Philly Fed P.Harker (2017 voter, hawkish) on ‘Economic Outlook’.

EUR/USD levels to watch

The pair is now up 0.20% at 1.1032 facing the next hurdle at 1.1172 (200-day sma) followed by 1.1244 (resistance line off 2016 high) and finally 1.1279 (high Sep.26). On the flip side, a break below 1.0998 (7-month support line) would target 1.0950 (low Jul.27) en route to 1.0909 (low Jun.24).