EUR/USD consolidates in a narrow range just above mid-1.1100s

The EUR/USD pair failed to gain any follow through traction and struggled to build on its recovery move from three-week lows touched on Tuesday.

The pair remained confined within a 25-pips narrow trading range just above mid-111.00s and lacked any firm direction amid lackluster trading action on Thursday, with the key US Dollar Index flat-lined around 97.25 level. 

Continuous slide in oil prices now seems to be weighing on the US inflation expectations and also dampening expectations for additional Fed rate-hike action in 2017. Market expectations is clearly reflected by a broadly weaker sentiment around the US Treasury bond yields, which eventually was seen weighing on the US Dollar.

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Even the latest ECB economic bulletin, revealing resilient economic growth in the region, failed to provide any bullish impetus for the major as traders also seemed reluctant from initiating / carrying big Euro bets ahead of the EU leaders meeting in Brussels, which has led to a subdued, range-bound price-action around the major. 

Next in focus would be the release of weekly jobless claims data from the US ahead of the Euro-zone consumer confidence, which would be looked upon to grab some short-term trading opportunities.

Technical levels to watch

Immediate hurdle is pegged near 1.1190-1.1200 region and is closely followed by resistance near 1.1220-25 area, above which the pair is likely to aim towards retesting 1.1280-85 resistance area ahead of the 1.1300 handle. 

On the flip side, weakness below 1.1145 level is likely to get extended towards 1.1120 support, which if broken is likely to drag the pair below 1.1100 mark towards its next support near 1.1065 region.