EUR/USD consolidates the upside near 1.1130

The bid tone around the EUR weakened a bit over the last hour, keeping the EUR/USD capped below 1.1140 levels amid a broadly muted US dollar.

EUR/USD holds 1.11 handle

Currently, EUR/USD now trades +0.05% at 1.1127, hovering in a tight range above 1.11 handle. The main currency pair is consolidating the Chinese data dump-backed rally, with the bulls having faced exhaustion, despite a subdued trading activity in the greenback versus its major. The USD index remains in the red (-0.07%) ahead of 96 handle.

Meanwhile, the EUR/USD pair remains largely unperturbed by a sudden turnaround in the risk conditions amid a sharp retreat seen in both the USD/JPY and cable. Markets now await the European open for fresh insights on the generalized sentiment ahead of the final Eurozone CPI and a series of US economic news. While focus now shifts towards th ECB policy decision scheduled next week.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1187/1.1200 (50-DMA/ round number). A break beyond the last, doors will open for a test of 1.1250 (psychological levels). On the flip side, the immediate support is placed at 1.1104 (20-DMA) below which 1.1088 (200-DMA) could be tested.