EUR/USD consolidates the vertical rise ahead of US data

The EUR/USD pair is currently consolidating the vertical rise witnessed last hours, with the bulls keeping range in the upper bound of 1.12 handle, as focus now shifts to the US dataflow due ahead of the US open.

EUR/USD at post-Brexit highs

Currently, EUR/USD rallies +0.77% to 1.1269, having posted fresh eight-week highs at 1.1277 post-European open. The main currency pair remains heavily bid, although fails several attempts to take on the recovery further towards 1.13 handle, as the bulls turn nervous heading into the much-awaited US CPI report due later in NA session.

However, the bid tone behind the EUR/USD pair remains intact as the US dollar suffers steep losses, largely on the back of repositioning ahead of the key risk events from the US dockets, viz., CPI, industrial output, housing starts, building permits and capacity utilization rate. The USD index meanders near fresh two-month lows of 94.73, recording a 0.82% loss on the day.

Calendar-wise, we had the ZEW surveys from Germany as well as the Eurozone, with the German headline ZEW economic sentiment coming in stronger at 0.5 in August as compared to July’s -6.8 points, however, missed markets’ expectations of a 2.0 reading.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1277 (2-month highs). A break beyond the last, doors will open for a test of 1.1300 (psychological levels). On the flip side, the immediate support is placed at 1.1204 (100--DMA) below which 1.1183 (5-DMA) could be tested.