EUR/USD lacking confidence, unlikely to find any big moves with US inflation in the barrel

The EUR/USD is trading up slightly into the 1.1865 ahead of the European market session.

European markets are going to be a slow affair for Thursday with Germany, Switzerland, and France off for Ascension day. The European Central Bank's (ECB) Economic Bulletin drops at 08:00 GMT, and will go over the previous governing council meeting held two weeks ago.

How to trade the US Inflation Report with EUR/USD

The US side sees a hectic calendar during the upcoming New York session, with US Jobless Claims (expected at 1.778 million, up from the previous 1.756 million) and US inflation figures with the Consumer Price Index (CPI), both at 12:30 GMT. Year-on-year US inflation for the month of April is forecast to print at 2.2%, a slight uptick from the previous reading of 2.1%.

EUR/USD analysis: downward pressure eases, bearish trend intact

EUR/USD levels to watch

As FXStreet' Chief Analyst Valeria Bednarik noted, Euro bears have eased off the gas a little bit, but the overall trend remains deeply bearish, and the pair is running out of opportunities to establish a bullish correction: "technically, the pair retains its bearish trend, and the 4 hours chart shows that the latest peak met once again selling interest around a firmly bearish 20 SMA. In the same chart, technical indicators have corrected oversold readings, with the Momentum still advancing below its mid-line, but the RSI having already lost directional strength, now consolidating around 36. The decline has been quite straight and bigger time frames indicate that the pair is overextended, with shy signs of downward exhaustion appearing, yet not enough to confirm a bottom underway. A more consistent upward correction is not out of the table, particularly if US data disappoints big, yet a break below 1.1800 will reduce chances of such event, and favor a downward extension towards 1.1660."

Support levels: 1.1840 1.1800 1.1775

Resistance levels: 1.1900 1.1940 1.1990