FXstreet.com (Barcelona) - The EUR/USD completely retraced the European rally on ECB's Nowotny and Praet words, not that concerned about the strengthening euro, shrugging off yesterday's remarks from Juncker. Having quickly rallied to 1.3325 high, the market plunged to 1.3257 low ahead of the US CPI inflation report release.

The annualized headline CPI eased from 1.8% to 1.7%, taking analysts by surprise as they expected an unchanged figure. Excluding food and energy, data rose 0.1% on the month, lower than the 0.2% consensus.

Industrial Production rose 0.3% in December, in line with expectations, capacity utilization was published as the upside surprise. Capacity utilization was expected to move a little higher, from 78.4% to 78.5% in December, but actual data has beaten market consensus by rising to 78.8%.While total net TIC flows rose from $-56.7B (revised from $-58.9B) to $27.8B in November, net long-term TIC flows jumped from $1.3B (revised from $-1.0B) to $52.3B, beating market consensus of $14.8B.

As the 1.3257 daily low is confirming support, for now, the EUR/USD is currently rebounding. The market has reached 1.3293 session high so far, but EUR/USD remains in "red" on the daily candlestick.

According to Roboforex analysts, the correction lower might have ended after this drop to 1.3257 low: "Today, in my opinion, the price may return to the level of 1.3330 and then form a new descending structure to reach the target at 1.3262", wrote analyst Igor Sayadov, considering the correction as completed there. "After that, I think, the pair may continue growing towards the level of 1.3500", he added.