EUR/USD refreshes session lows post-US PPI

   •  US PPI rises to 3.1% in Nov., 2.9% expected.
   •  USD recovers lost ground after better reading.
   •  A follow-through selling needed to confirm bearish outlook. 

Having faced rejection just ahead of the 1.1800 handle, the EUR/USD pair turned lower and has now dropped to fresh session lows.

Currently trading around the 1.1755 region, the pair met with some supply after the latest US PPI print came-in at +3.1% y-o-y for November as against 2.9% expected and previous month's reading of 2.8%. 

A follow-through uptick in the price of finished goods and services sold by producers now seems to have eased some of the concerns over stubbornly low inflationary pressure and provided a minor boost to the US Dollar. 

It would now be interesting to see if bears are able to maintain their dominant positive and decisive breakthrough 50-day SMA as the focus remains on this week's key event risks - Wednesday's FOMC decision and the ECB meeting on Thursday.

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes, "the bearish potential seen last week has clearly diminished, although further gains are still far away, according to technical readings in the 4 hours chart, as the price remains mid-way between horizontal 100 and 200 SMAs, while struggling around a marginally bearish 20 SMA. The Momentum indicator aims higher above its 100 level,  but the RSI remains within bearish territory. Yet at the same time, the  price is near its multi-week low and below 1.1800, which also stands for the 61.8% retracement of the late November bullish run."