EUR/USD deflates from highs, back around 1.1100

After climbing as high as the vicinity of 1.1120 in early trade, EUR/USD has now given away some pips and is now back around the 1.1100 neighbourhood.

EUR/USD in 6-month peaks

The pair is extending its rally on Wednesday, posting gains for the fourth straight session an reaching fresh 6-month tops in the 1.1115/20 band, always against the backdrop of the persistent sell-off around the greenback.

USD suffered further today following the rising effervescence in the US political arena, with the Trump-FBI-Russia controversy staying as the exclusive driver for the drop of the US Dollar Index to fresh 6-month lows, returning to levels last seen in early November.

Nothing of relevance data wise in Euroland, with only the final CPI figures for the month of April due for release, although no changes are expected. Across the pond, the EIA will publish its weekly report on US crude oil inventories.

EUR/USD levels to watch

At the moment, the pair is advancing 0.20% at 1.1105 and a break above 1.1117 (2017 high May 17) would target 1.1146 (high Nov.4 2016) en route to 1.1300 (high Nov.9 2016). On the flip side, the next support aligns at 1.1073 (76.4% Fibo of 1.1300-1.0339) followed by 1.0911 (20-day sma) and finally 1.0826 (200-day sma).