EUR/USD extends recovery from 1-week lows, eyes 1.1700

• EUR/USD recovers from 1-week lows amid a weaker US dollar.  
• Euro posting modest gains versus US dollar after finding support at the 20-day SMA.  

The EUR/USD pair moved off lows and it was approaching 1.1700. The pair bounced following US inflation data that came in below expectations. As of writing it was trading at 1.1694, at the highest level of the day.  

The recovery from the lows took place amid a decline of the greenback across the board. The US dollar lost strength after the US CPI showed an increase of 0.1% during June and 2.9% over the last twelve months, the highest rate since 2011. The data came in below expectation.  

Volatility remains limited in EUR/USD and also on other majors. At 17:30 GMT, an interview that Fed Chair Powell gave to Marketplace Radio will be released. His comments are likely to be followed by investors.  

The euro is posting modest daily gains versus the US dollar, recovering after suffering yesterday the worst performance since the beginning of the month. The pair found support today above the 20-day moving average that stands around 1.1650. The recovery from 1-week lows looks like a bullish correction so far.  

EUR/USD Technical levels  

To the downside, immediate support levels might be located at 1.1665 (Jul 11 low), followed by 1.1650, 1.1625 and 1.1595. On the upside, resistance could be seen at 1.1690 (Jul 12 high), 1.1725 and 1.1750.