EUR/USD continues to struggle below 1.1100 level

The EUR/USD pair has failed to benefit from improvement in global risk sentiment and an attempted move beyond 1.1100 handle got sold into. The pair rose to 1.1125 but trimmed its gains and retraced back below the very important 200-day SMA to currently trade around 1.1080-90 band.

On the economic data front, the final German CPI print for June matched previous estimates while June WPI number came-in better-than-expected but was still below rise recorded in May. From the US, JOLTS job opening fell short of consensus estimates.

The pair, however, had a muted reaction to the economic releases and continued with its near-term range-bound trade below 200-day SMA, awaiting for next big trigger. 

From technical perspective, the ongoing range-bound movement seems to constitute towards formation of a rectangular chart pattern, pointing to near-term consolidation phase before the pair resumes its prior weakening trend. 

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "Technically and in the short term, the pair presents a modest positive tone, as in the 1 hour chart, the price is holding above its moving averages, with the 20 SMA heading higher and already above the 100 SMA. Technical indicators have retreated from overbought territory and turned flat within positive levels, lacking enough strength to confirm further gains. In the 4 hours chart, is clear that selling interest around a still bearish 100 SMA attracted sellers, whilst the technical indicators maintain a neutral stance, suggesting the pair will hold within its comfort zone until a fresh catalyst comes."

"Support levels:  11055 1.1005 1.0960
Resistance levels: 1.1125 1.1155 1.1190"