EUR/USD hits fresh highs despite positive US data

• USD turned negative across the board. 
• EUR/USD testing yesterday’s highs. 
• PMI and ISM came in above expectations. 

The EUR/USD pair rebounded at 1.2430 and jumped to 1.2468 reaching a fresh daily high. It was holding near the top with a strong momentum, but still under Wednesday’s highs. 

The latest economic reports from the US showed better-than-expected numbers but only offered a short-lived spike to the greenback. The PMI came in at 55.4 (vs 54.9) while the ISM manufacturing index reached 59.1 (vs 58.8).  Details of the ISM included a decline in the employment index to 54.2 from 57.2 and a slide in the new orders index to 65.4% from 67.4%.

Neither the “slightly hawkish” FOMC statement yesterday, nor today’s data (also jobless claims surpassed expectations) offered support to the greenback. During the last hours, USD also turned lower against commodity currencies.

Outlook 

EUR/USD was gaining momentum, testing yesterday’s highs. If it manages to break 1.2465/70, the 1.2500 region would be exposed and likely tested. Above, last week highs at 1.2535 will gain attention. 

On the opposite, if EUR/USD failed to break above the 1.2465 area, a consolidation or a potential bearish correction seems possible for the next hours. A slide below the 20-hour moving average at 1.2425 could open the doors for a decline under 1.2400 and would remove the bullish tone. On a wider perspective, the uptrend remains intact while the pair continues to consolidate in a range below 1.2480 and above 1.2350.