EUR/USD eased from tops on US data, around 1.1770

• Above expectations US data prompted spot to recede from peaks
• Higher US yields should keep rallies short-lived
• Consolidation, scarce volatility seen ahead of ECB event

After climbing to fresh tops in the 1.1780/85 band, EUR/USD has now receded towards the 1.1770 area in the wake of auspicious results from the US docket.

EUR/USD stays bid ahead of ECB

Despite the small correction lower, the pair manages well to keep the positive tone for the second session in row today, backed by recent auspicious results from advanced PMIs (Monday) and the improvement in the IFO survey seen earlier today.

The greenback has now trimmed part of its earlier losses after durable goods orders expanded 2.2% inter-month in September, while orders excluding the Transportation sector rose 0.7%, both prints coming in above initial expectations.

Ahead in the session, US new home sales for the month of September are next on tap seconded by the EIA’s weekly report on US crude oil inventories.

EUR/USD levels to watch

At the moment, the pair is up 0.13% at 1.1776 and a break above 1.1858 (high Oct.20) would target 1.1882 (high Oct.12) en route to 1.1911 (high Aug.2). On the flip side, the next support is located at 1.1725 (low Oct.23) seconded by 1.1686 (low Oct.6) and finally 1.1662 (low Aug.17). In addition FXStreet’s technical confluence indicator (TCI) notes important resistance area around 1.1790/1.1801, where aligns the 5-day sma, 200-h sma and Tuesday’s top.