EUR/USD remained well bid at 1.1135 after EU CPI

The EUR/USD pair pared some of its early gains to 1.1150 region  after the release of final Euro-zone CPI print for June but remained comfortably above 1.1100 handle around 1.1135-40 band. 

According to data released by the Eurostat, Euro-zone June CPI matched previous estimates and remained at +0.1%. Meanwhile, the core CPI also matched the flash estimates and showed a rise of 0.9% as compared to year ago. The data pointed to easing deflationary pressure in the region's economy.

On Thursday a broad selling pressure around the US Dollar, led by BOE's decision to hold its monetary policy unchanged, lifted the pair to a 7-day high level of 1.1165. The pair, however, quickly retraced back to 1.1100 handle as upbeat US monthly PPI and weekly jobless claims data provide the much needed respite for the greenback.

Next in focus would be a flurry of US economic release, which includes - inflation report, retail sales and industrial production data for the month of June, along with the latest print of Empire State manufacturing index and prelim consumer sentiment for the month of July. Today's US economic data has the potential to provide a much needed momentum in order to determine the pair's near-term direction.

Technical levels to watch

On a sustained break above 1.1165-70 strong resistance, the pair seems to immediately head towards reclaiming 1.1200 handle, above which the momentum could get extended towards 1.1240 resistance area. 

On the flip side, sustained weakness back below 1.1100 handle and a follow through selling pressure below a short-term ascending trend-line support near 1.1065 area is likely to drag the pair back towards the lower end of its recent trading range support near 1.1020-15 region.