EUR/USD hits fresh session high as USD continues to drift lower

After spending majority of the European trading session around 1.0400 handle, the EUR/USD pair seems to have gained fresh traction during early NA session and rose to hit fresh session high.

Currently trading around 1.0430 region, the US Dollar extended its profit taking slide and prompted bears to cover their short-positions. Moreover, possibilities of shorts getting triggered on a sustained move above 1.0400 handle could have also contributed to the pair's strong up-move in the last hour or so.

Next on tap would be existing home sales data from the US, which is expected to record a 1.0% m/m decline and come-in to show 5.5 million units (annualized pace) were sold during the month of November. 

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, "Technically, the pair has made little progress, still looking bearish in the 4 hours chart, although with absent directional strength. The 20 SMA has lost its downward strength, but capped the upside anyway, while technical indicators maintain their bearish slopes within negative territory. The immediate support is the weekly low of 1.0352, followed by 1.0320. Below this last, the decline can extend to the 1.0270/90 price zone."

"Above 1.0420 on the other hand, the pair can correct towards 1.0460, where selling interest will probably contain the advance."