EUR/USD retreats as US dollar gains momentum, back near 1.1700

• US dollar rebounds and climbs to daily highs across the board amid data and yields.
• EUR/USD drops back below 1.1740, remains sideways.

The EUR/USD pair peaked earlier at 1.1758 following a report about when the ECB might raise rates in 2019 but then lost strength and pulled back amid a rally of the US Dollar across the board.

Economic data from the US showed higher-than-expected inflation data. The PPI rose 0.3% in June with the annual rate reaching 3.4%, the highest level since 2011. The US dollar failed to rise immediately after the data, offset by the Reuters report on ECB rates. On Thursday, US CPI data is due.

EUR/USD dropped from 1.1756 to 1.1709, approaching the daily low at 1.1694. So far the pair has been able to hold on top of 1.1700 during the US session but the current tone favors the downside.

Technical levels

To the downside, immediate support is seen at 1.1690/95 (daily low), followed by 1.1665 and 1.1630. On the upside, resistance might be located at 1.1725/30 (20-hour moving average), 1.1760/65 (daily high) and 1.1790.