EUR/USD pare early gains, EU CPI print in focus

As the European session got underway, the EUR/USD pair pared its gains and moved back to trade in familiar range post FOMC announcement on Wednesday as traders now await for fresh impetus from the final print of Euro-zone CPI.

On Wednesday, the pair rose to the vicinity of 1.1300 after FOMC announcement but trimmed its gains as policy makers still called for a 50bps rate-hike in 2016, which restricted sharp fall for the greenback. 

On Thursday, the final print of the Euro-zone CPI for the month of May will be in the spotlight during European session ahead of the inflation figures from the US, later during NA session. US economic calendar also features the release of Philly Fed manufacturing index and weekly jobless claims, which might provide cues for short-term traders.

From technical perspective, the pair once again failed to surpass 1.1300 handle that suggest strong resistance around that level. Reversal from immediate strong resistance and a subsequent break below 1.1250 level would negate any bullish bias and continue dragging the pair lower.

Technical levels to watch

Weakness below 1.1250 immediate support could find support around 1.1225-20 region (100-day SMA), below which the pair seems to break through 1.1200 handle and head towards testing an important support near 1.1165-60 area. 

On the flip side, emergence of strong buying interest above 1.1300 handle has the potential to boost the pair further towards its next major resistance near 1.1355-60 area ahead of 1.1400 round figure mark.