EUR/USD in tight range above 1.1160, EZ data eyed

The EUR/USD pair retraced yesterday’s entire rally and now trades around the same range where it traded during the last Asian session, as the calm prevails ahead of the much-awaited Chinese trade balance data.

EUR/USD remains below 200-DMA at 1.1087

Currently, EUR/USD now trades almost unchanged at 1.1063, unable to break above 1.1070 barrier over the last few hours.  The main currency pair stalled its retreat from 1.1125 levels and now consolidates the down, awaiting fresh incentives to gauge the next direction.

While the US dollar remains largely subdued against its major peers, completely ignoring upbeat remarks from Fed official Mester. Meanwhile, the USD index now trades -0.13% at 96.42 levels.

Markets now look forward to the Chinese trade report ahead of Euro zone industrial production data due later in the European session.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1080/87 (10 & 200-DMA). A break beyond the last, doors will open for a test of 1.1117/50 (20-DMA/ psychological levels). On the flip side, the immediate support is placed at 1.1029/22 (Jul 6 & Jun 30 low) below which 1.1006/00 (Jun 26 low/ round figure) could be tested.