EUR/USD Trims Gains, EUR/GBP Weakness Weighs
Drop in EUR/GBP cross post strong UK CPI release has pushed EUR/USD pair back to 1.1418 (23.6% of 1.0463-1.1714).
Fades spike to 1.1460
Once
again the spike to 1.1460 levels was met with fresh offers. This has
been the case since the start of the current month. Meanwhile, the drop
to 1.1330-1.1340s has run into offers. Therefore the pair finds itself
stuck in the range with daily chart showing back to back spinning top
formations.
Ahead in the day, the spot remains at the mercy of
action in the EUR/GBP and EUR/JPY cross, given the economic calendar in
the US does not offer first tier data releases.
EUR/USD Technical Levels
Acceptance
above 1.1418 (23.6% of 1.0463-1.1714) would once again expose
resistance zone of 1.1450-1.1470. Only a convincing close above the same
preferably on bigger time frames would signal continuation of recovery
from post ECB low. In such case, 1.15 could be put to test followed by
hurdle at 1.1561 (Aug 26 high).
On the other hand, a break below
daily low of 1.14 would shift risk in favor of a drop to support zone
of 1.1330-1.1340. If breached the spot could drift lower to 1.1236
(23.6% of 1.0463-1.1714).
(Market News Provided by FXstreet)