EUR/USD clings to gains near 1.1160

After hitting daily highs at 1.1175 in early trade, EUR/USD has now returned to the 1.1165/60 band.

EUR/USD firmer on USD weakness

The pair has retreated to multi-day lows near 1.1150 on Friday in response to higher-than-expected inflation figures in the US economy, which have given extra legs to the greenback and boosted speculations on a potential rate hike later in the week.

There are no scheduled releases in Euroland today, leaving the focus of attention to the upcoming FOMC meeting on Wednesday.

Regarding positioning and according to the latest CFTC report, EUR speculative net shorts have been trimmed by around 11K contracts and Open Interest climbed to 7-week highs during the week ended on September 13.

EUR/USD levels to watch

The pair is now up 0.05% at 1.1161 and a breakdown of 1.1145 (low Sep.16) would target 1.1121 (low Aug.31) en route to 1.1043 (low Aug.5). On the flip side, the immediate resistance is located at 1.1207 (20-day sma) followed by 1.1288 (resistance line off 2016 high) and finally 1.1329 (high Sep.8).