After rising to weekly high level of 1.1355, the EUR/USD pair lost its upside momentum and has now erased majority of its daily gains to currently trade around 1.1330 region.
The release of flash version of Euro-zone PMI prints failed to impress bulls and attract fresh buying interest. Adding to this a broad based greenback recovery, as measured by the US Dollar Index, also exerted some selling pressure at higher level.
Market participants remain cautious ahead of the Fed chairwoman Yellen's address at the Jackson Hole symposium later this week, which would provide fresh insights over the central bank's monetary policy outlook for 2016 and determine the near-term trajectory for the greenback.
Later during NY trading session, the release of new home sales data and Richmond Manufacturing Index from the US could provide some fresh impetus for short-term traders.
Technical outlook
Valeria Bednarik, Chief Analyst at FXStreet, notes, "the technical picture in the 4 hours chart is neutral-to-bullish, as the price is above a horizontal 20 SMA, whilst technical indicators are also flat, with the Momentum indicator stuck around its 100 level and the RSI heading nowhere, but around 62."
"The immediate resistance is 1.1366, last week high, and the level to surpass to confirm additional gains, with 1.1400 as the next bullish target. Above this last, the price can extend up to 1.1460, a major long term resistance."
"Below 1.1300 on the other hand, the price can retrace down to 1.1260, whilst below this last, the next support comes at 1.1220/30."
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