EUR/USD trims gains to 1.1365, Brexit result come into view

The EUR/USD pair extended its up-surge on broad US Dollar weakness and rose to 1.1421 its highest level since May 12, before retracing during early NY trading session to currently trade around 1.1360-70 band. 

Earlier during European trading session, the composite Euro-zone services PMI fell short of expectations but still remained in expansion territory. Despite of a disappointing reading, the pair rallied hard on better-than-expected manufacturing PMI that negated slightly weaker services print.

From the US, weekly jobless claims were well below expected and the Markit manufacturing PMI also printed better-than-expected reading. However, new home sales data for May disappointed market participants with the reading for previous month also revised lower.

Moving forward, traders would continue to derive movement for the pair from the prevailing risk sentiment surrounding the critical Brexit vote.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "The 1 hour chart shows that the technical indicators are retreating from overbought levels, but also that the price is firmly above its moving averages. In the 4 hours chart, the technical picture also favors the upside, as the technical indicators hold within positive territory, but losing upward strength, whilst the price accelerated far above its moving averages. The price has stalled around the 61.8% retracement of May's decline, with a break above favoring and extension up to 1.1460, en route to 1.1500."

"Support levels: 1.1360 1.1320 1.1280
Resistance levels: 1.1420 1.1460 1.1500"