EUR/USD registers minor gain to 1.1330, US CPI eyed for short-term trend

The EUR/USD pair bounced off the session low level of 1.1311, nearing 50-day SMA support, and has now risen to session peak level of 1.1330.

The US Dollar weakened on Monday after the Empire State manufacturing index showed a sharp decline in manufacturing activity in New-York. The index plummeted to a three-month low reading of -9, from +9.6 in April.

On Tuesday, the greenback extended its weakness as risk-on sentiment got a boost from rally across global equity markets. Investors would now eye today's US CPI print for April, which could assist investors to determine the near-term trend for the pair.

Technical levels to watch

From current levels momentum above 1.1340 intermediate resistance is likely to get extended towards an important support break-point, now turned strong resistance, around 20-day SMA region near 1.1365-70 zone. Only a decisive break through this immediate strong resistance could now assist the pair to scale higher levels in the near-term.

On the flip side, 1.1300 confluence region remains immediate key support to watch for, below which the pair might turn vulnerable to immediately test April lows support near 1.1220-15 area. The break-down momentum could further get extended in the near-term towards testing 100-day SMA support near 1.1150-45 region.