EUR/USD recovers modestly from weekly lows, approaches 1.1100

• US Dollar Index retreats from fresh weekly highs, amid lower-than-expected data. 
• EUR/USD bounced from weekly lows, remains under 1.1100.

The EUR/USD pair rose during the American session and printed a fresh daily high at 1.1095. It remains near the top, on a quiet day ahead of Christmas holidays. 

The greenback is posting mix results. US data came in below expectations (Durable Goods Orders and New Home Sales) and failed to offer a boost to the dollar. The DXY reached at 97.80, the highest intraday level since December 6 but then pulled back and as of writing stands near 97.70, unchanged for the day. 

The euro is among the top performers in Europe. EUR/CHF bounced from monthly lows at the same time EUR/USD reached the highest in a month near 0.8900. 

Price action is expected to remain low ahead of holidays. On Tuesday, the US bond market will close earlier and markets will remain closed on Wednesday. Full market activity across the globe will return on Friday. 

Technical outlook 

The EUR/USD is rebounding on Monday from the 1.1060 support area. It needs to regain levels above 1.1110 to recover some bullish potential. Ahead of the second half of the American session, it is likely to keep consolidating between 1.1075 and 1.1090. A decline below 1.1060 would clear the way to more losses. The next support might be seen at 1.1040/45.