EUR/USD recovery loses momentum

After hitting fresh year-to-date lows, EUR/USD managed to recover some ground over the last hours, with thin liquidity due to the US Thanksgiving holiday causing exaggerated movements.

EUR/USD hit its lowest level in 11 months at 1.0519 but it climbed over half a cent ever since, reaching a daily high of 1.0583 in recent dealings. The pair was last trading at 1.0570, up 0.17% on the day. From a wider view, EUR/USD continues to post lower lows, having fallen 12 out of the last 13 trading days.

On Wednesday, FOMC minutes showed, members generally agreed that the case for an increase in the Fed Funds rate had continued to strengthen.  Some participants presented a case to hike at the next meeting in order to preserve Fed's credibility.

EUR/USD levels to watch

As for technical levels, immediate resistances could be found at 1.0643 (Nov 23 high), 1.0659 (10-day SMA) and 1.0700 (psychological level). On the flip side, supports seen at 1.0519 (2016 low Nov 24), 1.0500 (Dec 3 2015 low/psychological level) and 1.0470 (Mar 16 2015 low).

To learn more about this topic, check our video analysis:

EURUSD from Tip TV Productions on Vimeo.