The EUR/USD pair started the week on a bullish note, although failed to sustain near the recent multi-month tops and corrected sharply below 1.1450 levels, before finding fresh bids at 10-DMA of 1.1435 to now regain the mid-point of 1.14 handle.
EUR/USD heads back towards daily pivot at 1.1472
The renewed uptick in EUR/USD appears to gain extra legs from the in-line with expectations Eurozone final CPI data for the month of June. European Monetary Union Consumer Price Index (YoY) in line with forecasts (1.3%) in June
Additionally, broad based US dollar recovery from ten-month troughs loses steam, which also aids the recovery in the spot, in a bid to test daily tops reached at 1.1475. The USD index eases-off 95.12 to now trade at 95.03 levels, still +0.14% up on the day.
With the Eurozone inflation data out of the way, focus now remains on the Empire State manufacturing index due later in the NA session, in absence of first-tier economic releases and on little impetus from mixed European equities.
EUR/USD Technical Levels
According to Slobodan Drvenica at Windsor Brokers Ltd, “Current structure favors dip-buying scenario for extension of broader uptrend towards key barriers at 1.1614 and 1.1712 (May 2016 and Aug 2015 highs). Alternatively, loss of 1.1300 support (05 July trough) would sideline bulls for deeper correction. Res: 1.1474; 1.1489; 1.1500; 1.1527 Sup: 1.1423; 1.1400; 1.1391; 1.1370.”
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