EUR/USD fades a spike to 1.0665 ahead of EZ CPI

Dhwani Mehta FXStreet

The EUR/USD pair stalled its retreat from the Asian session tops and climbed back sharply higher to score fresh session highs above 1.0660 levels, following the release of the German employment report.

EUR/USD awaits EZ CPI

Currently, EUR/USD peaks into green near 1.0655 levels, having posted fresh daily highs at 1.0664 last minutes. The main currency pair broke higher in the European session and reversed entire losses seen in the last Asian session, after the greenback shaved-off all of its gains to now trade muted against its main competitors.

However, the major quickly faded a spike to new daily tops as rising treasury yields and resurgence of risk-on trades in the market, weigh negatively on the EUR/USD pair.

The immediate focus now remains on the Eurozone CPI figures, as markets paid little heed to in-line with expectations German jobs data. Meanwhile, ECB Draghi’s speech, US ADP jobs, Core PCE price index and pending home sales data are lined up for release later in the NA session.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0664 (daily high). A break beyond the last, doors will open for a test of 1.0685 (weekly high) and from there to 1.0700 (round figure). On the flip side, the immediate support is placed at 1.0604 (10-DMA) below which 1.0561 (Nov 28 low) and 1.0535 (Nov 25 low) could be tested.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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