EUR/USD trims recovery gains ahead of EU industrial production

Having posted a session high near 1.1240 region, the EUR/USD pair has trimmed some of its recovery gains and is currently trading around 1.1225 level. 

The pair witnessed some selling pressure at higher levels amid renewed greenback buying interest, especially against the Japanese Yen on the back of expected diverging monetary policy actions. 

From a technical perspective, the pair has repeatedly failed to build on its strength beyond 1.1250-60 and has come under intense selling pressure on any up-move towards 1.1300 handle. However, immediate downside is being protected at a previous trading range break-out point, now turned immediate strong support, near 100-day SMA, suggesting a range-bound consolidation phase ahead of next week's major event risk, the Fed monetary policy decision. Hence, it would be prudent to wait for a decisive break through the trading range before confirming the pair's near-term trajectory. 

Next on tap would be Euro-zone industrial production data and later during NA trading session traders will confront the release of import prices data from the US.

Technical levels to watch

On the downside, a sustained weakness below 100-day SMA immediate support near 1.1200 handle is likely to drag the pair immediately towards the very important 200-day SMA support near 1.1140 region. Alternatively, a decisive move above 1.1250-60 immediate resistance the pair is likely to immediately aim towards reclaiming 1.1300 handle above which a fresh leg of up-move is likely to boost the pair back towards August swing high resistance near 1.1365 level.