EUR/USD erases tepid recovery gains, back below 1.1200 handle

A fresh bout of US Dollar buying interest seems to have emerged during early European session, with the EUR/USD pair erasing all of its tepid recovery gains to currently trade back below 1.1200 handle.

Currently hovering around 100-day SMA near 1.1185 region, the pair initially reclaimed 1.1200 handle but failed to build on to its recovery momentum amid thin liquidity on the back of a bank holiday in the UK. 

Meanwhile, the greenback maintained its bid tone on increasing investors’ confidence that the Fed is more likely to go ahead and raise interest-rate by the end of this year after Friday's Fed Chair Janet Yellen's speech at Jackson Hole symposium and hawkish comments from Fed Vice Chairman Stanley Fischer. 

On the economic data front, the release of Fed's preferred inflation gauge, Core PCE Price Index, along with personal income and spending data will grab traders attention during NA session on Monday.

Technical levels to watch

On a sustained weakness below 100-day SMA support near 1.1180 region, the pair seems to immediately drop to 1.1155-50 intermediate support before eventually heading towards testing the very important 200-day SMA support near 1.1100 round figure mark.

Meanwhile on the upside, recovery back above 1.1200 handle, and a subsequent move above session high resistance near 1.1210 level, is likely to gain momentum, which seems to boost the pair towards 1.1265-70 resistance area. A follow through buying interest should assist the pair to reclaim 1.1300 handle.