EUR/USD off highs on US data, focus on Fedspeak

The upside momentum in the single currency has now eased a tad, sending EUR/USD back to the mid-1.1200s.

EUR/USD attention to Fed speakers

After testing daily highs at 1.1270 earlier in the session, the pair has surrendered some pips after auspicious results from the US housing sector seems to have given some oxygen to the greenback.

In fact, New Home Sales dropped less than expected 7.6% during August to 609K units vs. 600K units expected and down from July’s 659K.

In addition, ECB’s M.Draghi said the recovery in the euro region seems to have lost some momentum, although it is expected to continue at a moderate pace.

Later in the NA session, USD will take centre stage in light of speeches by FOMC’s D.Tarullo and R.Kaplan.

EUR/USD levels to watch

The pair is now up 0.22% at 1.1250 and a break above 1.1270 (high Sep.26) would aim for 1.1272 (resistance line off 2016 high) and finally 1.1329 (high Sep.8). On the flip side, the immediate support lines up at 1.1119 (low Sep.21) followed by 1.1043 (low Aug.5) and then 1.0950 (low Jul.25).