EUR/USD retreats from new monthly highs, still near 1.2100

• Weak greenback keeps EUR/USD above 1.2050.
• Better-than-expected US data fails to lift USD.
• Data ahead: Eurozone CPI and NFP.

The EUR/USD pair remains near 2017 highs supported by a slide of the greenback across the board. Among majors, the euro is the top performer on Thursday.

Eyes continue on 1.2100

EUR/USD reached 1.2088 the highest level in almost four months after the beginning of the American session. Then it lost strength and pulled back. As of writing it was trading at 1.2060/65, moving away from the highs but still holding a bullish tone and near 1.2100.

Earlier today the ADP report showed that the private sector added in December 250K jobs, above the 190K expected and at the fastest pace since March. Later the Markit PMI Service sector came in at 53.7, also surpassing expectations. The data offered only a brief respite to the dollar. The US Dollar Index rose to 92.00 after the reports but then dropped back to test 91.75/80.

Investors are also looking at the stock market with the Dow Jones reaching a new milestone. The blue-chip index reached 25,000 for the first time ever. Regarding data, on Friday in the Eurozone, the flash CPI will be released and in the US the official jobs report (NFP).

EUR/USD Technical levels to watch

To the upside, the area near 1.2100 is the key level to break. A consolidation on top could open the doors to more gains with a potential target below 1.2165. On the flip side, immediate support is seen at at 1.2060, followed by 1.2030 and the 1.2000 handle (Jan 3 & 4 low).