EUR/USD finds support near 1.1650 on US CPI

The pair recedes further to the mid-1.1600s following the ECB minutes.
The greenback retreats from tops on disappointing CPI figures.
ECB’s Council showed concerns about trade dispute on confidence.

Pablo Piovano FXStreet

EUR/USD is now prolonging the leg lower to the mid-1.1600s following the publication of the ECB minutes of the latest meeting, although it has managed to regain some traction on disappointing US inflation figures.

EUR/USD off lows on US CPI

The European currency is now under further pressure after the ECB’s Council was concerned on the impact on confidence of the ongoing trade conflict. Members of the Council now see that the slowdown could probably extend into the second quarter in some countries, lifting near term risks.

However, the greenback lost some upside traction after US inflation figures tracked by the CPI showed headline consumer prices advanced 0.1% MoM during June and 2.9% over the last twelve months. In addition prices stripping food and energy costs rose at an annualized 2.3% and 0.2% inter-month.

Further data in the US space showed Initial Claims rose by 214K WoW, taking the 4-Week Average to 223.00K from 224.75K.

EUR/USD levels to watch

At the moment, the pair is losing 0.14% at 1.1658 and a break below 1.1650 (low Jul.12) would open the door to 1.1648 (21-day sma) and then 1530 (low Jun.19). On the upside, the next resistance emerges at 1.1791 (high Jul.9) seconded by 1.1853 (high Jun.15) and finally 1.1854 (38.2% Fibo of April-May drop).

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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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