EUR/USD closes the day above 1.1100

EUR/USD ended the day above 1.1100 as the rebound extended into a second day Wednesday, with the dollar trading broadly weaker.

As the Brexit dust settles, EUR/USD managed to recover some ground while EU negotiations over when and how the UK will leave the union begin. EUR/USD reached a peak of 1.1130 before easing a tad over the last hours.

On the data front, German headline inflation rose to 0.3% in June compared to a year before, and 0.1% compared to May. Meanwhile, US data came in mixed, with the Fed's preferred inflation gauge, core PCE price index at 0.9% YoY, well below Fed’s 2% target. Personal spending matched expectations, while the rise in personal income fell short of expectations.  Housing data also disappointed, with pending home sales down by 3.7% in May after advancing steadily for three straight months.  

EUR/USD levels to watch

As for technical levels, immediate resistances could be found at 1.1193 (10-day SMA), 1.1229 (100-day SMA) and 1.1277 (50-day SMA). On the other hand, supports are seen at 1.1098 (200-day SMA), 1.0970 (Jun 27 low) and 1.0911 (Jun 24 low).