EUR/USD hits fresh highs above 1.1100

FXStreet (Córdoba) - A new wave of USD selling pushed EUR/USD above 1.1100 for the first time since October 23. The pair peaked at 1.1116 and it was trading at 1.1095, almost 200 pips from yesterday’s closing price.

While the euro showed strength in the market and also gains versus the pound and the Swiss franc on the back of risk aversion, the US dollar extended losses as market expectations of a rate hike by the Federal Reserve in March fade.

Today US employment data failed to boost the US dollar. On Friday, the official report will be release. Market consensus appears to be pointing that not even a strong NFP number could rise Fed chances of another hike.

EUR/USD technical levels

To the upside, immediate resistance might be seen at 1.1115/20 (daily high / 50% Fibonacci retracement 1.17 - 1.05), 1.1170 (Oct 5 & 6 low) and 1.1260 (61.8% Fibonacci retracement). On the flip side, support might now be seen at 1.1060/50 (December highs), 1.0980/90 (January highs / 38.2% retracement) and 1.0890 (20-day MA).