EUR/USD prints fresh highs above 1.1800 but remains limited under 1.1830

EUR/USD rose further after the beginning of the American session above 1.1800 and printed a fresh high at 1.1820. Afterward lost strength and at the moment, is trading at 1.1800/05, up 40 pips for the day. 

The pair received support from a stronger euro across the board. The common currency reached a multi-year high versus the pound and the highest in a week against the Swiss franc. The euro and the yen are the top performers on Wednesday. 

Mix data ahead of Jackson Hole 

Economic numbers supported the euro today. The Markit Eurozone PMI Composite posted 55.8 in August according to the preliminary  estimate. It is the highest in two months and above the expected 55.5. “This is another positive set of numbers for the euro area, which continues to enjoy its best growth spell for a number of years”, said Andrew Harker, Associate Director at Markit. 

Consumer confidence numbers from the Eurozone showed an increase to -1.5, near the peak of June, signaling an improvement in consumer spending ahead. 

Eurozone consumer confidence increases slightly in August - ING

In the US, the Markit flash report showed that US private sector growth reached a 27-month high in August (PMI Composite at 56.0, up from 54.6 in July). However, the new home sales showed a significant and unexpected decline in July, with a a drop of 9.4%.

Attention now turns to the Jackson Hole Symposium that starts tomorrow. 

EUR/USD Levels to watch 

To the upside, the area around 1.1830 continues to be a key resistance, followed by 1.1850 (Aug 11 high) and 1.1890/95 (Aug 3 high). On the flip side, support levels might lie at 1.1775 (20-hour moving average),  1.1740/45 (Aug 22 low) and 1.1730 (Aug 21 low).