EUR/USD hits fresh highs, eyes 1.1300

EUR/USD gained momentum during the last hours amid a decline of the US dollar against European currencies and climbed to test the 1.1280 area. If it breaks higher, attention would turn to 1.1300.

Momentum remains positive for the euro with the price above the 20-hour moving average that stands at 1.1215; a decline below could weaken the EUR/USD bullish intraday tone.

From a fundamental perspective, data from the US showed that New Home Sales in August dropped less than expected (-7.6%) to 609K units vs. 600K expected. In Europe, European Central Bank President, Mario Draghi said that he expects the economic recovery to continue but signaled that it seems to have lost some momentum.

Technical levels

The pair is at 1.1271, up 0.43% for the day. Resistance levels might be seen at 1.1280/85 (Sep 15 high), 1.1300 (psychological) and finally 1.1326 (Sep 8 high). On the flip side, the immediate support could be seen at 1.1245 (American session low), 1.1220 (daily low) and 1.1190 (Sep 23 low).