EUR/USD cuts losses, back near 1.0700

Pablo Piovano FXStreet

The greenback is now surrendering part of its initial gains vs. its G10 peers on Wednesday, allowing EUR/USD to get closer to the 1.0700 up barrier.

EUR/USD looks to data

After bottoming out in the 1.0670 region in early trade, the pair is looking to stage a more lasting rebound in light of some correction lower in the buck following the opening bell in Euroland.

The recent offered bias in USD has been ‘boosted’ by comments by president-elect Donald Trump, who considered the Dollar as too strong although in a broader context including China.

Spot in the meantime is up for the fifth straight week, returning to levels seen in early December around the 1.0700 neighbourhood and always backed by renewed USD selling.

Ahead in the session EMU’s final December CPI figures are unlikely to attract any attention ahead of the more relevant inflation figures in the US economy. Further releases in the US docket includes Industrial/Manufacturing Production, the NAHB index and the Fed’s Baige Book along with speeches by Dallas Fed Robert Kaplan (voter, hawkish), Minneapolis Fed Neil Kashkari (voter, centrist) and Chairwoman Janet Yellen.

EUR/USD levels to watch

The pair is now losing 0.18% at 1.0693 and a breakdown of 1.0676 (low Jan.18) would target 1.0627 (55-day sma) en route to 1.0535 (20-day sma). On the flip side, the initial hurdle aligns at 1.0719 (high Jan.17) ahead of 1.0798 (high Dec.5) and the 1.0873 (high Dec.8).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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