EUR/USD slides sharply below 1.1200 handle

Following a muted reaction to mostly in-line with estimates US monthly retails sales, fresh offers around 1.1230 immediately shaved-off 30-pips, taking the EUR/USD major towards hitting fresh session low level around 1.1200 handle. 

A fresh bout of US Dollar buying interest seems to have emerged, which boosted the greenback across the board and dragged the pair to level not seen after dismal NFP data. Investors seem to position themselves for Wednesday's key event, FOMC monetary policy decision, amid looming concerns over the Brexit referendum.

On economic data front, Euro-zone industrial production and unemployment data came-in slightly better-than-expected while monthly retail sales data from the US were mostly in-line with consensus estimates.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet notes, "the EUR/USD pair retains its bearish tone in the short term, although the price is still unable to confirm a break below the 23.6% retracement of its latest decline, around 1.1215. In the 1 hour chart, the 20 SMA heads south around 1.1270, whilst the technical indicators have turned modestly lower, near oversold territory, in line with further declines. In the 4 hours chart, the 20 SMA also heads sharply lower above the current level, whilst the technical indicators lack directional strength, but remain within negative territory, in line with further declines for today."

"Support levels: 1.1210 1.1160 1.1120 
Resistance levels: 1.1250 1.1295 1.1340"