EUR/USD firmer, approaches 1.1400 ahead of German CPI

The pair advances near 1.1400 on USD-weakness.
The greenback looks to rebound from lows around 96.60.
German flash CPI, US PCE later in the docket.

Pablo Piovano FXStreet

The renewed selling bias around the greenback is fuelling the upside in EUR/USD to the vicinity of the 1.1400 handle, or daily highs.

EUR/USD looks to data, Draghi

Spot managed to rebound from yesterday’s low in the 1.1270/65 band in response to the bout of downside pressure that hit the buck after yesterday’s dovish tone from Chief J.Powell.

In fact, Powell turned unexpectedly dovish on Wednesday after he said that rates are ‘just below’ the neutral rate. His comments came opposed to those made last month, when he assessed that those same rates were still ‘long from neutral’.

Looking ahead, German advanced inflation figures will be the salient event in Euroland. Across the pond, PCE, Personal Income/Spending and Pending Home Sales will all precede the FOMC minutes.

EUR/USD levels to watch

At the moment, the pair is gaining 0.17% at 1.1385 and a break above 1.1392 (high Nov.29) would target 1.1434 (high Nov.22) en route to 1.1473 (high Nov.20). On the downside, the immediate support aligns at 1.1267 (low Nov.28) followed by 1.1214 (2018 low Nov.12) and finally 1.1188 (61.8% Fibo of the 2017-2018 rally).

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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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