EUR/USD fades renewed uptick to Aug 2015 tops, German CPI eyed

The steady overnight recovery in EUR/USD gained further traction post-European open, sending the rate back to test Aug 2015 tops at 1.1715. However, sellers lurked at the last, which pushed the pair back around 1.17 handle.

EUR/USD: Sell the rallies?

The main currency pair rapidly eroded 15-pips and reverted towards the familiar range near 1.17 handle, despite renewed broad based US dollar selling and weaker European stocks.

The latest leg lower in the major is largely on the back of the bulls having run into the key resistance of the old high (Aug 2015 tops) of 1.1715.

However, the downside remains cushioned amid cross-driven strength, especially with EUR/CHF rallying +0.53% in response ongoing selling in the CHF.

Later today, the EUR/USD pair could struggle to extend the recovery above 1.17 handle, as the US dollar will resume its post-FOMC declines ahead of the US Q2 GDP report.

The US economy is expected to have grown around 2.6% in Q2 versus 1.4% growth seen in the first quarter. 

In the meantime, the German CPI figures could offer fresh impetus to the Euro for the time-being.

EUR/USD Technical Set-up  

According to Karen Jones, Analyst at Commerzbank noted: “EUR/USD is at the top of a 3 month channel and poised to encounter its 200 day ma at 1.1797: The market has reached major medium term resistance at 1.1713/97 the August 2015 high, 200 week ma and long term Fibo, it is also the top of a 3 month channel and we would look for signs of profit taking here. Note that the daily RSI has not confirmed the new high. Nearby support is provided by the accelerated uptrend at 1.1545 and the 3 month uptrend at 1.1415 and while above here, there is scope for further gains.”