EUR/USD rebounds and rises to 1.1700

• EUR/USD erases losses boosted by a slide of the US dollar.
• Euro remains below weekly highs, could continue to consolidate while below 1.1750.

The EUR/USD pair gained momentum during the US session on the back of a slide of the US dollar across the board. The rally in GBP/USD triggered by comments from EU Barnier also boosted EUR/USD.

The pair rose from 1.1650 to 1.1707, hitting a fresh daily high. The move to the upside lost momentum around 1.1700, where it is trading, modestly higher for the day. It is headed toward the third daily gain in a row and the highest close since late July.

US Q2 GDP data was revised to the upside (4.2% vs 4.0% expected) but failed to boost the greenback. US yields also reversed and affected the greenback. The 10-year yield hit 2.90% and pulled back to 2.88%. On Thursday, personal income and spending data are due. Market consensus point to an increase of 0.3% in income and 0.4% in spending.

EUR/USD Technical Levels

The pair remained today below yesterday’s highs. The rally took a pause and the consolidation phase could continue. A break above 1.1750 could trigger more gains while below 1.1600, the negative tone is likely to surge.

To the upside, resistance levels might be located at 1.1705/10 (daily high), followed by 1.1735 (Aug 28 high) and 1.1750. On the flip side, immediate support is seen at 1.1680 (20-hour moving average), 1.1650 (Aug 29 low) and 1.1620.