• The EUR /USD pair declined on Thursday as the dollar retreated as investors refocused on the chances of higher U.S. inflation and growth.
   
• Investor appetite for dollar improved with higher global bond yields and stable stock markets around the world, a day after the Dow Jones Industrial Average topped the 20,000 mark for the first time.
   
• New U.S. single-family home sales fell to a 10-month low in December after three straight months of solid gains, but the housing market recovery remains intact as a tightening labor market boosts wage growth.
   
• The ongoing weakness is set to continue for this pair as the resistance level at 1.0773 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
   
• To the upside, the immediate resistance can be seen at 1.0705, a break above this level would expose the pair to next resistance level at 1.0773.
   
• To the downside, immediate support can be seen at 1.0644, a break below at this level will open the door towards next level at 1.0600.
  
  Resistance Levels
  
  R1:  1.0705 (50% Retracement level)       
  
  R2: 1.0773 (61.8% Retracement level)    
  
  R3: 1.0815 (Nov 15th high)
  
  Support Levels
  
  S1: 1.0644 (38.2% Retracement level)                    
  
  S2: 1.0600 (Psychological levels)
  
  S3: 1.0570 (23.6% Retracement level)