EUR/USD trims gains to 1.1060-65 on stronger US macro data

A fresh bout of US Dollar buying interest seems to have kicked-in post the release of better-than-expected US GDP and consumer confidence data, dragging the EUR/USD pair back to Monday's range to currently trade around 1.1060-65 band.

According to the data released, the US economy posted a better-than-expected growth of 1.1% during the first quarter of 2016. Adding to the optimism, Conference Board's Consumer Confidence index rose to its highest level since Jan. and was much better than the most optimistic expectations.

Strong economic data provide the much respite for the US Dollar, which has been witnessing selling pressure across the board on improving global risk sentiment on receding Brexit fears. 

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "the  1 hour chart, shows that the price is above a mild bullish 20 SMA, while the technical indicators hold flat within positive territory, keeping the downward risk limited. In the 4 hours chart, however, the price was rejected from the 38.2% retracement of the Friday's decline, whilst the 20 SMA also contained the advance, and even extended its slide below the mentioned Fibonacci level, whilst the technical indicators have turned lower, the Momentum within neutral territory, and the RSI near oversold readings, all of which favors some additional declines, particularly on a break below 1.1020, the immediate support."

"Support levels: 1.1020 1.0970 1.0930
Resistance levels: 1.1120 1.1160 1.1200"