EUR/USD recovery loses momentum, capped by 1.1140

The greenback gave up ground on Thursday despite positive economic data, as investors took profit following several sessions of gains.

EUR/USD managed to recover from a 2 ½-month low of 1.0985 scored during the European session and turned positive for the day. However, the upside has remained capped by the 1.1040 area so far. At time of writing, the pair is trading at 1.1032, up 0.27% on the day.

Despite today’s corrective move, the US dollar remains among the strongest currencies across the board amid firming expectations of another rate hike by the Fed before the year-end. FOMC meeting minutes showed  yesterday that policymakers remain split on whether the central bank should tighten policy further. 

On the data front, US initial jobless claims remained at a 4-decade low last week while import prices rose slightly below expectations in September. On the other side of the pond, data showed  released  Germany CPI rose 0.1% in September, matching expectations. 

EUR/USD levels to watch

In terms of technical levels, immediate supports are seen at 1.1000 (psychological level), 1.0960 (Jul 27 low) and 1.0911 (Jun 24 low). On the other hand, resistances line up at 1.1067 (Oct 12 high), 1.1141 (Oct 11 high/10-day SMA), 1.1170 (200-day SMA) and 1.1198/1.1200 (50-day SMA/psychological level).