EUR/USD bounces from weekly lows to test daily highs

• Euro rebounds versus the US Dollar after approaching multi-year lows. 
• DXY peaks but then losses momentum and retreats, still positive for the day. 

The EUR/USD pair bottomed at 1.1115 at the beginning of the American session, the lowest level in a week and then bounced to the upside, amid a correction of the greenback across the board. It climbed back above 1.1130, still remains near the critical 1.1100/10 area and now, closer to the daily high it reached on Asian hours at 1.1141.

The US Dollar trimmed gains versus majors over the last hours amid a rally in gold prices, a decline in crude oil and a move lower in equity prices. The DXY was trading at weekly highs at 98.28 and pulled back to 98.16. 

Data from the US was mostly ignored by market participants. The second estimate of Q1 GDP showed that the US economy expanded at a 3.1% rate, below the 3.2% initially reported. A different report showed that pending home sales dropped unexpectedly in April. Tomorrow the key numbers include German inflation and the personal income and spending report in the US. 

EUR/USD Levels to watch 

Despite moving from weekly lows to test daily highs, the pair continues to trade in a small range, with low volatility and a prevailing bearish bias. So far the area around 1.1100/10 continues to limit the downside. A break lower could trigger more losses with a potential target at 1.1060. On the upside, the immediate resistance is seen at 1.1140/50.