EUR/USD sits above 1.10 amid broad based USD selling

Broad based USD weakness in Asia helped EUR/USD pair extend gains to a session high of 1.1026. The currency pair is up for the second day.

Eyes US CPI data

Inflation in US as measured by the consumer price index (CPI) is seen rising 1.5% y/y in September. Dollar has been on the run off late on account of the rise in December rate hike bets (currently at 67%).

Consequently, the American currency looks ripe for a technical correction and is thus vulnerable to weaker-than-expected CPI data.

EUR/USD Technical Levels

The currency pair was trading around 1.1017. A break above 1.1098 (May 30 low) would expose 1.11 handle. A violation there could yield 1.1172 (100-DMA + 200-DMA). On the other hand, a breakdown of support at 1.0995 (session low) would open doors for a re-test of 1.0964 (previous day’s low) and 1.0911 (Brexit day low).