EUR/USD supported at 1.1000 ahead of US data

The EUR/USD pair extended its downslide and almost tested 1.10 handle post-European open, before recovering some ground amid stalled USD buying and upbeat trade balance report from the Euroland.

EUR/USD awaits US retail sales for fresh impetus

Currently, EUR/USD drops -0.33% to 1.1023, bouncing-off lows struck previously at 1.1004. The main currency pair remains in the red, although trims losses as the EUR received fresh impetus from better-than expected Eurozone trade data.

Moreover, the USD bulls appears to face exhaustion, as the US dollar recedes gains against its main competitors, sending the USD index slightly lower near 97.85, still up +0.34% on the day.

However, the upside looks limited as rallying European stocks weigh on the funding currency status of the euro. Attention now turns towards the US retail sales and consumer sentiment data due later today, while Fed speaks will be also closely heard for any clue on the timing of a Fed rate hike (Dec Fed rate hike is almost priced-in).

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.1058 (5-DMA). A break beyond the last, doors will open for a test of 1.1082 (daily R1) and from there to 1.1100 (round number). On the flip side, the immediate support is placed at 1.1000 (round figure) below which 1.0985 (3-month low) and 1.0959 (Jul 27 low) could be tested.