Loses its recovery momentum below the 1.1000 mark

• EUR/USD loses its recovery momentum around 1.0966 ahead of November’s German Producer Price Index (PPI) data.
• The pair maintains the bullish vibe above the key 100-hour EMA; the RSI indicator stands in bullish territory above 70.
• The first resistance level is seen at 1.0987; 1.0934 acts as an initial support level for the pair.

The EUR/USD pair loses gains during the early European session on Wednesday. Investors await November’s German Producer Price Index (PPI) for fresh impetus, which is estimated to drop 0.3% MoM and 7.5% YoY, respectively. At press time, the major pair is trading at 1.0966, losing 0.11% on the day.

Technically, EUR/USD maintains a positive outlook as the pair holds above the key 100-hour Exponential Moving Averages (EMA) on the four-hour chart. The upward momentum is supported by the Relative Strength Index (RSI), which stands in bullish territory above 70.

The first upside barrier of the major pair will emerge near a high of December 19 at 1.0987. The critical resistance level is located in the 1.1000–1.01010 region, representing the upper boundary of the Bollinger Band and a high Dec 14. Further north, the next hurdle is seen at 1.1065 (high of August 10) and finally at 1.1147 (high of July 24).

On the other hand, a low of November 28 at 1.0934 acts as an initial support level for EUR/USD. The additional downside filter to watch is a low of December 15 at 1.0888. The key contention level is seen at the confluence of the lower limit of the Bollinger Band and the 100-hour EMA at 1.0870. A break below the latter will see a drop to a low of November 27 at 1.0825.

EUR/USD four-hour chart