FXstreet.com (Barcelona) - The market is continuing yesterday's down move and looking to touch the 1.3000 psychological level. Ahead of the preliminary release of the EMU CPI inflation report, the pair reached as low as 1.3003, before bouncing to 1.3020 on the publication.

The preliminary EMU CPI remained unchanged at 2.2% in December, instead of moving lower to 2.1% as expected by market consensus. The Italian flash CPI inflation report came in higher than expected at 0.3% on the monthly basis, and eased from 2.5% to 2.4% as expected on the yearly.

“Penetrating support at 1.3119, EURUSD price action looks set for another move lower towards subsequent support at 1.2998”, wrote Fxstreet.com independent analyst Richard Lee, pointing to 1.2892 as next support and resistance at 1.3200.