The euro was steady against the dollar on Thursday after disappointing euro zone data pulled it away from a two-year high struck earlier in the session.
Purchasing managers' surveys for the euro zone showed the pace of growth in business activity eased unexpectedly this month, suggesting the region's recovery may be less solid than previously thought.
The euro was last steady near $1.38, having earlier risen as high as $1.3824, its strongest since November 2011, with traders saying it extended gains after surpassing a reported options barrier at $1.38 and as upbeat China data lifted riskier currencies.
Expectations that the U.S. Federal Reserve will maintain its stimulus program into next year also weighed on the dollar.
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"The market is still focused on the Fed, but the disappointing tone of the euro zone data will suggest that the euro is looking toppy up here and this should keep euro/dollar in check," said Jane Foley senior currency strategist at Rabobank.
She said Thursday's peak of $1.3824 could now act as stiff resistance for the euro.