EUR/USD hits fresh lows below 1.1400 and rebounds

The EUR/USD pair bottomed during the US session at 1.1381 but it quickly rose back above 1.1400. The recovery from the lows was capped by 1.1420, and it trades at 1.1405, down 50 pips for the day.

The move to the downside took place following dovish remarks from Fed’s Williams. He mentioned that further rate hikes are not a commitment of a promise. The rally was short-lived, but the greenback is still in positive territory for the day against most of its rivals, supported by higher US yields today. The US Dollar Index is up, trading above 96.50, recovering from 1-month lows it reached yesterday at 96.20.

Data released today showed that the US economy expanded at a 3.4% rate during the third quarter (down from the previous estimate of 3.5%), a slower-than-expected increase in durables goods orders and that the PCE price index climbed to 1.9% (annual) in November, in line with expectations.

To the upside, the immediate resistance could be seen around 1.1430 (20-hour moving average), followed by 1.1480 and 1.1495/1.1500 (Nov 7 high). On the flip side, the 1.1400 area is still a support to consider, and then 1.1365 and 1.1330./

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