EUR/USD remains confined within a short-term trading range

The EUR/USD pair ran through fresh offers at higher level and turned back into negative territory, amid broad based greenback recovery despite of dismal release of monthly retails sales and PPI data. 

Currently trading around 1.1230-35 band, the pair once again failed to sustain its move beyond 1.1250 and reversed over 50-pips from session peak level of 1.1284 touched in the aftermath of disappointing US economic releases, which now seems to have poured cold water on expectations of a Fed rate-hike action at its meeting on September 20-21.

Meanwhile, the release of weekly jobless claims, which continues to reflect the underlying strength of US labor market, and a stronger-than-expected jump in Philly Fed manufacturing index for second consecutive month, helped the greenback to recover its entire disappointing releases-led slide. 

From technical perspective, the pair has been oscillating within a short-term trading range between 100-day SMA support and 1.1260-70 resistance area. Hence, it would be prudent to wait for a decisive move in either direction in order to confirm the pair's near-term trajectory.

Technical levels to watch

From current levels, 100-day SMA near 1.1200 handle remains immediate strong support to defend, which if broken decisively is likely to drag the pair towards testing the very important 200-day SMA support near 1.1140 region. 

On the flip side, a follow through buying interest above 1.1250-60 immediate supply zone, leading to a momentum above 1.1300 handle, now seems to boost the pair immediately towards its next major resistance near 1.1365 level.