Following the release of US economic data, the EUR/USD pair witnessed a tepid recovery from session but remained well offered below 1.1200 handle.
Currently trading around 1.1165-70 region, off session low level of 1.1153, the pair gained some respite on the back of a slight disappointment from the US personal spending data. According to the data released just a short while ago, US personal spending remained unchanged and fell short of consensus estimates pointing to a 0.1% rise.
Meanwhile, the Fed's preferred inflation gauge, Core PCE Price Index, printed bang in-line with estimates and showed m-o-m rise of 0.2% in August and personal income also matched expectations and came-in at 0.2% for August.
Earlier during European trading session on Friday, the pair had a muted reaction to the mixed release of Euro-zone preliminary CPI data amid renewed worries over Deutsche Bank’s performance.
Next in focus would be Chicago PMI and Revised UoM Consumer Sentiment for the month of September.
Technical outlook
Valeria Bednarik, Chief Analyst at FXStreet, notes, "the EUR/USD pair is increasingly bearish in the 4 hours chart, although still above 1.1120, the base of its latest range. In the mentioned chart, the price has accelerated its decline below its moving averages, while technical indicators have entered negative territory, with the RSI indicator anticipating the Momentum, heading down around 40."
"In this scenario, a break below the mentioned daily low should lead to a downward extension towards the mentioned 1.1120, whilst below this last, the bearish momentum will likely accelerate, with the next support around 1.1080."
"A recovery above 1.1210, on the other hand, should see the pair recovering ground, with 1.1250 as the next possible bullish target."
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