EUR/USD trims gains, EUR/GBP weakness weighs

Drop in EUR/GBP cross post strong UK CPI release has pushed EUR/USD pair back to 1.1418 (23.6% of 1.0463-1.1714).

Fades spike to 1.1460

Once again the spike to 1.1460 levels was met with fresh offers. This has been the case since the start of the current month. Meanwhile, the drop to 1.1330-1.1340s has run into offers. Therefore the pair finds itself stuck in the range with daily chart showing back to back spinning top formations.

Ahead in the day, the spot remains at the mercy of action in the EUR/GBP and EUR/JPY cross, given the economic calendar in the US does not offer first tier data releases.

EUR/USD Technical Levels

Acceptance above 1.1418 (23.6% of 1.0463-1.1714) would once again expose resistance zone of 1.1450-1.1470. Only a convincing close above the same preferably on bigger time frames would signal continuation of recovery from post ECB low. In such case, 1.15 could be put to test followed by hurdle at 1.1561 (Aug 26 high).

On the other hand, a break below daily low of 1.14 would shift risk in favor of a drop to support zone of 1.1330-1.1340. If breached the spot could drift lower to 1.1236 (23.6% of 1.0463-1.1714).