EUR/USD offers at daily highs cap 0.4% rally

FXstreet.com (London) - EUR/USD has rallied from the 1.3480 resistance line and continued through 1.3510 supply to mark a 1.3538 high on the session.

EUR/USD found offers after an impressive surge higher while the dollar has been on the back foot across the board on Wednesday. From the calendar, we have not seen much more data other than US New Home Sales (MoM) (Aug) printed 0.421M vs 0.420M consensus. While the change came in at 7.9% MoM. For the US, the debt ceiling deadline is a black cloud over the dollar as it closes in, but with the ECB meeting on the horizon and a mild risk off mode prevailing, a dull range with some downside risk again here could be the most likely scenario.

EUR/USD Levels

The 20 DMA is 1.3323, the 50 DMA is 1.3305 and the 200 DMA is 1.3168. RSI (14) reads 69.97 while supports are 1.3370, 1.3385, 1.3409, 1.3453 (Aug high and key), 1.3467, 1.3497. Spot is currently 1.3526 with resistances 1.3555/69 cycle highs and 1.3711. Market bias has been to sell on rallies.

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