EUR/USD clinches highs around 1.1830 on downbeat US PCE

The single currency is now extending the upside momentum vs. the buck, lifting EUR/USD to fresh tops in the 1.1830 area.

EUR/USD higher on US data

The buying pressure around spot gained extra legs after US inflation figures tracked by the core PCE came in below expectations for the month of August. In fact, core PCE showed prices rose at an annualized 1.3% (vs.1.4% forecasted) and 0.1% inter-month (vs. 0.2% estimated) during August.

In addition, US personal income and personal spending expanded at a monthly 0.2% and 0.1%, respectively, matching prior surveys.

Spot is thus accelerating the upside as the selling bias continues to pick up pace around the buck, which tumbled to the 92.80 area when tracked by the US Dollar Index.

EUR/USD levels to watch

At the moment, the pair is up 0.34% at 1.1827 and a breakout of 1.1833 (high Sep.29) would expose 1.1868 (10-day sma) and finally 1.1904 (21-day sma). On the flip side, the immediate support aligns at 1.1717 (low Sep.27) followed by 1.1662 (low Aug.17) en route to 1.1564 (100-day sma).