EUR/USD tests highs around 1.1400

The bid tone around the European currency has now picked up extra pace, lifting EUR/USD to fresh 3-day peaks in the 1.1400 neighbourhood.

EUR/USD up after solid US data

The pair’s march north remains unabated today despite the US services sector showed a positive performance during last month. In fact, Markit’s services PMI came in at 54.2 and the more relevant ISM non-manufacturing climbed to 57.4, both readings coming in above expectations.

On the not so bright side, poor ADP figures for the month of June have weighed on the buck earlier in the session, sparking a sell off in the US Dollar Index and lending extra support to the pair’s up move.

EUR derived extra support earlier in the day following the ECB minutes from the last meeting, where the central bank argued, among other issues, that the current asset purchase programme could be revised if inflation outlook improves.

Today’s up tick in spot stays also supported by the performance of EUR futures and options markets, although the upcoming US non-farm payrolls could surely add some caution to the move.

EUR/USD levels to watch

At the moment, the pair is up 0.42% at 1.1399 and a breakout of 1.1448 (2017 high Jun.30) would open the door to 1.1466 (high Apr.12 2016) and 1.1466 (high Apr.16 2016). On the downside, the immediate support aligns at 1.1313 (low Jul.5) followed by 1.1290 (low Jun.28) and finally 1.1255 (21-day sma).

In addition, the daily RSI (14) is rebounding to 64 while the MACD remains in the bullish side.