EUR/USD maintains strong bid tone after US data

The EUR/USD pair maintained its strong bid tone and extended its recovery momentum to a 5-day high level of 1.1257 following the release of existing home sales data from the US.

The pair, however, has retraced few pips from session peak and is currently trading back below mid-1.1200s. The pair built on to yesterday's rebound from monthly lows after US existing home sales in August unexpectedly fell by 0.9% to an annualized pace of 5.33 million units, well below 5.45 million expected and July's 5.38 million units. Also the Conference Board's leading index for the month of August fell short of market expectations. 

During early NA trading session, the pair ignored better-than-expected release of US weekly jobless claims data, which fell to the lowest level since July, and held on to its strong gains above 1.1200 handle.

Meanwhile, the pair had a muted reaction to the preliminary release of Euro-zone consumer confidence data, which was in-line with consensus estimates. 

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "In the 4 hours chart, technical indicators are losing their upward strength, but remain well above their mid-lines, yet a downward move seems limited, as the price remains near the daily high, and stands well above their moving averages. The rally can extend up to 1.1280 on a break above the mentioned high, with an extension beyond it pointing for a test of the 1.1335 level."

"Support levels: 1.1200 1.1160 1.1120
Resistance levels: 1.1250 1.1280 1.1335"