EUR/USD closes the day above 1.1100

Ani Salama FXStreet

EUR/USD ended the day above 1.1100 as the rebound extended into a second day Wednesday, with the dollar trading broadly weaker.

As the Brexit dust settles, EUR/USD managed to recover some ground while EU negotiations over when and how the UK will leave the union begin. EUR/USD reached a peak of 1.1130 before easing a tad over the last hours.

On the data front, German headline inflation rose to 0.3% in June compared to a year before, and 0.1% compared to May. Meanwhile, US data came in mixed, with the Fed's preferred inflation gauge, core PCE price index at 0.9% YoY, well below Fed’s 2% target. Personal spending matched expectations, while the rise in personal income fell short of expectations. Housing data also disappointed, with pending home sales down by 3.7% in May after advancing steadily for three straight months.

EUR/USD levels to watch

As for technical levels, immediate resistances could be found at 1.1193 (10-day SMA), 1.1229 (100-day SMA) and 1.1277 (50-day SMA). On the other hand, supports are seen at 1.1098 (200-day SMA), 1.0970 (Jun 27 low) and 1.0911 (Jun 24 low).

Author

Ani Salama

FXStreet

Ani Salama is an Economist specialized in financial markets and statistics analysis. In 2010, she joined FXstreet where she now contributes with the news section.

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