EUR/USD steady, consolidates above 1.1800

• Spot limited by 1.1830. 
• Upside losses momentum as USD recovers. 

The EUR/USD pair is moving in a range between 1.1830 and 1.1800, consolidating modest daily gains. The pair rose above 1.1800 during the European session and peaked at 1.1831, level located slightly below yesterday’s highs. 

US housing data limited the upside.  US housing starts in November jumped to a seasonally adjusted annual rate of 1.297 million in November (+3.3%).  While Building Permits rose to 1.298 million. Both above expectations and pushed the greenback modestly higher. The US dollar also received a boost from higher US yields. The Dollar Index found support at 93.00 and rose to 93.20, erasing all losses. Beyond the economic data, investors will be looking for the final outcome of the tax bill reform. 

US stocks drift into negative territory as tax bill vote draws near

Technical outlook

To the upside, the immediate resistance is the 1.1830 area that limited the upside yesterday and today. Above the next resistance levels might be seen at 1.1845 and 1.1865. In the short-term, the upside seems limited while below 1.1830. 

On the flip side, under 1.1795 (20-hour moving average) the US dollar could gain momentum. Support levels below could be seen at 1.1775 (Dec 19 low) and 1.1755.