EUR/USD extends recovery beyond 1.1100 after US economic releases

With improving global risk sentiment, the EUR/USD pair maintained its bid tone and extended its recovery to trade above 1.1100 handle during early US trading session. 

Earlier during European session data released from the Euro-zone's largest economy, Germany, showed GfK Consumer Climate improving to 10.1, while the preliminary CPI reading for June rose by a meager 0.1%. The inflation reading was below May's final reading of 0.3% but was in-line with consensus estimates.

Meanwhile, economic data released from the US were also mixed with the Fed's preferred inflation gauge, core PCE price index, and personal spending matching expectations, while the rise in personal income falling short of expectations. 

The US economic data failed to provide any respite for the already weaker US Dollar and the pair extended its recovery momentum further beyond 1.1100 handle. 

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "according to the 1 hour chart, the pair presents a neutral stance, with the price a few pips above an horizontal 20 SMA, and the technical indicators hovering directionless around their mid-lines. The 100 SMA in the mentioned time frame stands at 1.1108, converging with the mentioned 38.2% Fibonacci retracement. In the 4 hours chart, the price has been consolidating above a horizontal 20 SMA ever since the day started, while the Momentum indicator has turned south right above its mid-line, and the RSI indicator heads modestly lower around 46, suggesting little buying interest around the current level."

"Support levels: 1.1050 1.1020 1.0970 
Resistance levels: 1.1120 1.1160 1.1200"