EUR/USD rebounds from 1-week lows and trims losses

EUR/USD recovered part of the lost ground, but it is still headed toward the lowest close in a week. From the lows, the pair rose 50 pips and currently trades at 1.1750/55, down 0.35% from yesterday's closing price.

Earlier tumbled to 1.1712 following a rally of the US dollar, hitting the lowest level since July 28. The greenback gained momentum after a strong JOLTS report that showed Job Openings at 6.163 million in June, a record high and above market expectation of 5.775 million. Markets ended hours of price action in ranges after the report.

Despite the recovery EUR/USD still faces bearish pressure with the greenback stronger in the market. The Dollar Index is up for the day and it peaked at 93.72, a 1-week high.

Levels to watch

It is the second slide of the pair since the day it reached 30-month highs above 1.1900. From those highs, it retreated around 150 pips. The main uptrend remains intact but so is the short-term correction. A potential target could be the 20-day moving average that stands at 1.1650 or the 23.6% Fibonacci retracement of the rally from March.

For the coming hours, support levels might lie at 1.1710/15 (daily low), 1.1685 (Jul 21&24 high) and 1.1650 (Jul 27 low). On the flip side, resistance could be seen at 1.1775 (Aug 7 low), 1.1790 (20-hour moving average) and 1.1825 (Aug 8 high).