EUR/USD hits fresh session tops, above mid-1.1700s

The EUR/USD pair extended its recovery move from sub-1.1700 level and is currently placed at fresh session peak, in the region of mid-1.1700s.

The US Dollar surrendered early strong gains to 1-1/2 month tops and helped the pair to rebound from its lowest since mid-August. The shared currency further benefitted from today's better-than-expected Euro-zone PPI print, coming-in at 0.3% for August as compared to 0.0% previous and 0.1% expected.

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However, growing expectations for a December Fed rate hike move, further reinforced by yesterday's upbeat US ISM manufacturing PMI, and optimism over the US President Donald Trump's proposed tax reform plan might continue to keep a lid on any further up-move for the major.

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In absence of any major market moving economic releases from the US, comments by the Fed Governor Jerome Powell might influence the prevalent bullish sentiment surrounding the USD and provide fresh impetus for the major.

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Technical levels to watch

A follow through buying interest has the potential to continue lifting the pair towards 1.1790-1.1800 area. Any further up-move beyond the mentioned hurdle might now be capped at a previous support, now turned resistance, near 50-day SMA, around the 1.1845 region. 

On the flip side, 1.1725 level, closely followed by the 1.1700 handle, now becomes immediate support levels to defend, which if broken decisively would now turn the pair vulnerable to head towards testing its next major support near the 1.1670-60 region.