EUR/USD jumps to yesterday's high near 1.0480 level

The EUR/USD pair maintained its bid tone and edged back to Wednesday's peak, recovering over 100-pips from sub-1.0400 level touched yesterday. 

Currently trading around 1.0470 region, the greenback extended disappointing pending home sales data-led profit taking slide amid quiet trading and tumbling US treasury bond yields. Wednesday's disappointing housing data could be the first indication that rising interest rates might continue to weigh on the US housing sector and dampen prospects faster economic growth led by aggressive fiscal policies-led by Trump's incoming administration. 

In absence of any major economic releases, the US Dollar price dynamics would continue to be the sole driver for the pair's movement on Thursday. Initial jobless claims data is the only relevant data from the US economic calendar and would be looked upon for some impetus during early NA session. 

Technical levels to watch

A follow through buying interest above 1.0480 level is likely to accelerate the up-move towards 1.0500 handle above which the pair seems all set to head towards testing 1.0535-40 resistance area. On the downside, 1.0435 level now becomes immediate support, which if broken might drag the pair back towards 1.0400 handle. A convincing break back below 1.0400 important level, leading to a subsequent break below 1.0375-70 (yesterday's low) might now turn the pair vulnerable to break below 14-year lows support near 1.03500 area and aim towards testing Jan. 2003 lows support near 1.0335 level.