EUR/USD eases after reaching 1.1900 for the first time since Dec 1
- Euro's rally faced resistance at 1.1900.
- US Dollar negative momentum eased.
- US bond yields hit highest level in months.
The EUR/USD pair extended gains during the US session and hit a fresh 2-week high at 1.1900. The euro failed to continue its rally above and pulled back. It was hovering around 1.1880, on its way to the third daily gain in a row.
The euro was among the top performers in the market on Wednesday, with EUR/GBP trading above 0.8850, a key resistance and EUR/CHF near 2017 highs on top of 1.1700. While the US dollar was losing ground across the board, despite higher US bond yields. The 10-year yield was at 2.47% after hitting earlier 2.49% for the first tie since March. US economic failed to push the greenback higher. US existing home sales jumped 5.6% in November, the strongest pace in 10 years to 5,81 million against the 5,52 expected by analysts.
The US House is likely to pass today the final version of the tax bill. President Trump will hold a press conference today with Republican lawmakers. It was reported earlier that the signing of the bill could be delayed until January. Trump mentioned that the market hasn’t fully priced in the tax reforms according to his advisors.
EUR/USD Technical levels
To the upside, resistance levels might lie at 1.1900 (Dec 20 high), 1.1940 (Dec 1 high) and 1.1960 (Dec high). On the flip side, immediate support is seen at 1.1845/50 (Dec 19 high) and below the FXStreet's technical confluence indicator identifies support at 1.1810 and 1.1775.