EUR/USD advances slightly but upside limited

EUR/USD managed to advance a few pips during the American session and reached fresh daily highs as the dollar shrugged off better-than-expected US data, although from a wider perspective, the pair remains trapped in a range and close to 14-year lows scored earlier this month.

EUR/USD climbed to a daily peak of 1.0463 during the New York session, although it lacked follow through and continues to trade virtually unchanged on the day around the 1.0450 level.

US data showed consumer confidence improved to 113.7 in December versus 108.5 expected, while the Richmond Fed mfg index rose to 8, from 4 the previous month, and the Dallas Fed index climbed to 15.5 from 10.2 in November.

EUR/USD levels to watch

In terms of technical levels, next resistances are seen at 1.0499/1.0500 (Dec 22 high/psychological level), 1.0539 (Dec 15 high) and 1.0560 (21-day SMA). On the other hand, next supports could be found at 1.0421 (Dec 22 low), 1.0381 (Dec 21 low) and 1.0351 (2016 low, Dec 20).