EUR/USD rejected from highs

FXstreet.com (Córdoba) - The EUR/USD was firmly rejected from daily highs and erased intraday gains at the beginning of the New York session.

EUR/USD erases gains

EUR/USD reached a high of 1.3545 immediately after US jobless claims rose to a 6-month high, but quickly came under pressure and turned slightly negative for the day. At time of writing, EUR/USD is trading around 1.3515, a few pips below its opening price.

Meanwhile, the focus remains on the negotiations in Washington as markets continue to hope for a deal ahead of the debt limit deadline. Republican and Democrat parties seem willing to compromise to increase the debt ceiling limit for a short term in order to avoid a default and allow time for broader negotiations on the budget.

Supports and resistances for EUR/USD

On the downside, EUR/USD could find immediate supports at 1.3485 (Oct 9 & 10 lows) and 1.3470 (Sep 26 low). On the upside, if the pair breaks above 1.3545, it would face next resistances at the 1.3555/60 zone, where the 100- and 200-hour SMA converge, and then at the 1.3600/06 area (psychological level/Oct 8 & 9 highs).

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