EUR/USD headed for a 3% loss in 2016

The US dollar fell sharply in thin trading during the Asian session, with EUR/USD rising to as high as 1.0647 before losing momentum and drifting back to the 1.0500 area.

The stream of news has been particularly light, with moves exacerbated amid low liquidity. EUR/USD has spent the last hours in a range above 1.0500 and it was last trading at 1.0552, up 0.63% on the day.

EUR/USD is on track to post its second weekly gain in a row, but it remains 0.34% down for the month. Over the year, the shared currency has lost nearly 3%.

EUR/USD levels to watch

In terms of technical levels, short-term resistances are seen 1.0647 (Dec 30 high), 1.0700/01 (psychological level/50-day SMA). On the other hand, supports could be faced 1.0445 (10-day SMA), 1.0371 (Dec 28 low),1.0351 (2016 low, Dec 20),  1.0334 (Jan 2003 low) and 1.0300 (psychological level).