EUR/USD is consolidating daily gains and it has remained steady during the last hours unable to benefit from the retreat of the US dollar as stocks in Europe and in Wall Street trim losses. The pair peaked earlier at 1.1367, reaching a fresh 3-month high but quickly pulled back. The euro was rejected from levels on top 1.1350. To the downside, it found support above 1.1300 at 1.1310. The area between 1.1300 and 1.1310 has become a key intraday support level, where also the 20-hour SMA stands. A break lower could open the doors for a bearish correction. To the upside, a consolidation on top of 1.1350 could strengthen the euro, exposing daily highs and 1.1400. EUR high despite Europe From a fundamental perspective, the US dollar remains weak in the market amid speculations that the Federal Reserve won’t be able to raise rates during the first half of the year amid ongoing tensions in global financial markets. “We caution against thinking that the strength of the euro against the dollar is a vote of lack of confidence in the US or a vote of confidence in the EMU. In fact, the situation in Europe is deteriorating despite the euro's strength”, wrote analysts from Brown Brothers Harriman. Brexit and the refugee problem present existential challenges according to BBH analysts, that note that capital markets are fragmenting in Europe. “And on top of the North-South divide, Central Europe is diverging from Eastern Europe. “ For more information, read our latest forex news.