EUR/USD retreats after hitting six-day highs at 1.1970

• US dollar trims losses during the American session as US stocks move off highs.
• EUR/USD up for the third consecutive day.

The EUR/USD pair pulled back after hitting at 1.1970, the highest level since last Thursday. The euro was unable to hold above 1.1950 and is it hovering around 1.19845, on its way to the third consecutive gain but off highs.

A retreat of the US dollar across the board continues to be the key driver in the EUR/USD rebound. Economic data from the US showed a sharp decline in the flash June PMI of the service sector and a decline in new home sales. The numbers did not help the greenback.

US yields remain steady with the 10-year moving between 1.46% and 1.48%. In Wall Street, the Nasdaq hit new record highs before trimming gains. The Dow Jones drops by 0.05% . The recent correction in equity prices limited the decline of the US dollar. The DXY is falling by just 0.01% and is back at 91.70 after hitting lows around the 91.50 area.

Short-term levels

The pullback under 1.1950 means the EUR/USD is losing its bullish tone. A consolidation above 1.1950 would point to more gains ahead. On the flip side, at 1.1935 the 20-hour moving average stands: a break lower would weaken the euro further. The next support is seen at 1.1920 and then 1.1880. On the upside, if the euro climbs back above 1.1950, a test of the 1.1985 resistance might take place.

Technical levels