FXStreet (Mumbai) - After bottoming out at 1.1360 region in Asia, the EUR/USD pair extends its gradual recovery mode into the early European trades and fights hard to overcome the immediate resistance at hourly 20-SMA near 1.1380. EUR/USD rejected at 1.1395 The EUR/USD pair trades flat at 1.1385, rising to fresh session highs at 1.1388 in last minutes. The major recover losses and attempts a minor correction towards 1.14 handle after witnessing steep losses on Thursday. The EUR/USD pair was hammered almost 150 pips from near 1.1496 levels on Thursday after the greenback rebounded sharply in response to the solid US data releases. The US CPI matched estimates, declining 0.2% in Sept while the core figures rose 1.9% y/y versus 1.8% expectations. While ECB policymaker Ewald Nowotny stated yesterday that the ECB is clearly missing its inflation target and that additional sets of instruments are necessary, including structural tools. His comments also triggered fresh sell-off in the euro in the European morning. Looking ahead, markets await the US data releases including the prelim consumer sentiment and the industrial output data for further cues on the US economic outlook. While the sentiment on the European stocks will also influence the pair apart from the EZ final CPI data. EUR/USD Technical Levels The pair struggles below the 1.14 barrier which acts as the immediate resistance, beyond which 1.1422 (hourly 50-SMA) would be tested and from there to 1.1466 (daily R1). While the immediate support is located at 1.1349 (10-DMA), a breach of the last would expose 1.1300 (psychological levels), below which floors open for a test of 1.1280/1.1276 (20-DMA & 50-DMA) For more information, read our latest forex news.