EUR/USD recovery lacks momentum

FXStreet (Córdoba) - EUR/USD managed to move off session lows following a quick selloff on the back of strong US housing data, but the recovery remained capped by the 100-day SMA confining the pair to a phase of consolidation.

EUR/USD bottomed out at 1.1020 at the beginning of the New York session and although it managed to pare losses, momentum was lacking. At time of writing, the pair is trading at the 1.1045 zone, 0.29% below its opening price.

Main focus remains on US CPI and FOMC minutes to be published on Wednesday as investors look for guidance on the probability the Fed raises rates in September.

EUR/USD technical levels

In terms of technical levels, immediate supports are seen at 1.1020 (Aug 18 low), 1.1000 (psychological level) and 1.0960 (Aug 11 low). On the upside, resistances could be faced at 1.1045 (100-day SMA, 1.1093 (Aug 18 high) and 1.1124 (Aug 17 high).

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