EUR/USD remains capped at 1.14 handle ahead of US PPI
• Some renewed USD selling bias helps regain positive traction.
• Italian budgetary concerns kept a lid on any runaway rally.
The EUR/USD pair held on to its goodish intraday gains, albeit now seemed struggling to make it through the 1.1400 handle.
After yesterday's sharp retracement slide from near three-week tops, the pair regained some positive traction on Tuesday and was further supported by an unexpected improvement in the German ZEW Economic Sentiment index for December.
Further gains, however, remained capped amid concerns over Italy's budget deadlock with the European Commission, especially after Italian finance minister Giovanni Tria's comments that the government won't make major changes to the budget.
Adding to this, a modest US Dollar uptick, this time supported by a pickup in the US Treasury bond yields, further collaborated towards keeping a lid on any runaway rally, at least for the time being.
Moving ahead, market participants now look forward to the US economic docket, highlighting the release of Nov. PPI figure, in order to grab some short-term trading opportunities.
Technical levels to watch
Today Last Price: 1.1384
Today Daily change: 29 pips
Today Daily change %: 0.255%
Today Daily Open: 1.1355
Previous Daily SMA20: 1.1359
Previous Daily SMA50: 1.1413
Previous Daily SMA100: 1.1511
Previous Daily SMA200: 1.1738
Previous Daily High: 1.1444
Previous Daily Low: 1.135
Previous Weekly High: 1.1424
Previous Weekly Low: 1.1311
Previous Monthly High: 1.15
Previous Monthly Low: 1.1216
Previous Daily Fibonacci 38.2%: 1.1386
Previous Daily Fibonacci 61.8%: 1.1408
Previous Daily Pivot Point S1: 1.1322
Previous Daily Pivot Point S2: 1.129
Previous Daily Pivot Point S3: 1.1229
Previous Daily Pivot Point R1: 1.1415
Previous Daily Pivot Point R2: 1.1476
Previous Daily Pivot Point R3: 1.1509