EUR/USD revisits session highs

EUR/USD fell to fresh daily lows but quickly bounced toward the upper-side of its daily range as the dollar weakened somewhat amid headlines that China seized US underwater drone.

EUR/USD bottomed out at 1.0400, but found support ahead of its 14-month low struck Thursday at 1.0365, and climbed to a marginal daily peak of 1.0473 in recent dealings. At time of writing, the pair is trading at 1.0455, up 0.4% on the day.

EUR/USD managed to halt losses after falling more than 300 pips in the wake of Fed’s decision last Wednesday. Despite today’s correction, the broad bearish trend remains dominant, amid divergent monetary policies. EUR/USD remains on track to post its second weekly loss in a row.

EUR/USD levels to watch

In terms of technical levels, next supports could be found at 1.0365 (2016 low, Dec 14), 1.0334 (Jan 2003 low) and 1.0300 (psychological level). On the flip side, short-term resistances are seen 1.0500 (psychological level and former support level), followed by 1.0627 (10-day SMA) and 1.0669 (Dec 14 high).