EUR/USD rises further to test 1.1100

The euro is having the best day against the US dollar since April 24 and is rising for the third day in a row. EUR/USD printed a fresh 6-month high at 1.1097 and it remains near the highs, eying 1.1100. 

A weak US dollar boosted the pair above previous highs. The euro is headed toward the highest close since November 4. It has been rising constantly since it rebounded on Friday at the 20-day moving average that stands at 1.0850. It gained more than 200 pips since then. 

US economic data released today show mixed number. The first report on housing starts and building permits came in below expectation, showing an unexpected decline. Then, the April Industrial Production report surprised with a 1.0% gain (the highest in three years) but failed to trigger a recovery of the greenback.

US Industrial Production: Largest gain in three years - Wells Fargo

US: Building permits in April were at 1,229,000, 2.5% below the revised March rate of 1,260,000

On Wednesday, in the Eurozone traders will look into CPI data and the construction output report. No relevant report is scheduled in the US. 

Technical levels

To the upside, the immediate resistance is the 1.1100 handle followed by 1.1140 and 1.1180. On the flip side, support now might be located at 1.1060/65 (American session low), 1.1040 (20-hour moving average) and 1.0990 (May 15 high).