EUR/USD recovers from lows amid renewed USD weakness

EUR/USD has managed to recover from session lows after retracing half of its Friday’s gains in line with some renewed selling pressure in the dollar into the final fix of October.

EUR/USD bounced from a low of 1.0935 but the downward move lost momentum allowing the pair to climb back to the 1.0970 area. At time of writing, EUR/USD was trading at 1.0960, 0.25% lower on the day.

On the data front, PCE price index, the Fed's preferred gauge of inflation, rose 0.2% in September from the prior month and 1.2% from a year earlier, marking the fastest annual pace since November 2014. On the other side of the Atlantic, Eurostat reported Euro area annual inflation is expected to be 0.5% in October 2016 (0.5% exp) while core CPI is expected to rise 0.8% (0.8% exp).

EUR/USD levels to watch

In terms of technical levels, next supports could be found at 1.0925 (10-day SMA), 1.0873 (Oct 26 low), 1.0850 (Oct 25 low) and 1.0821 (Oct 3 low). On the flip side, resistances are seen at 1.0991 (Oct 26 high), 1.1000/04 (psychological level/Oct 19 high) and 1.1038 (Oct 20 high).