The EUR/USD pair maintained its strong bid tone and touched 1.1200 handle for the first time since the historic Brexit referendum on June 23.
After a brief pause on Monday, a broadly weaker US Dollar is extending support for the major to continue with its near-term upward trajectory on Tuesday. The pair got an additional boost after data from Euro-zone showed the number of unemployed people in Spain dropped more-than-expected during the month of July.
In absence of any major economic releases during European trading session, the pair seems more likely to continue gain support from a broadly weaker sentiment surrounding the greenback.
Later during NA trading session, Federal Reserve's preferred inflation gauge, Core PCE Price Index, would provide fresh impetus for near-term direction of the pair.
Technical levels to watch
From current levels the pair seems to extend its upward trajectory towards its next major resistance near 1.1230 region, above which a fresh leg of up-move would be triggered and lift the pair towards 1.1300 round figure mark.
On the flip side, 1.1170 level now seems to act as immediate support. A follow through selling pressure, dragging the pair below 1.1150 level, has the potential to drag the pair towards 1.1115-10 area ahead of the very important 200-day SMA support near 1.1075 region.
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