EUR/USD looking to recover after bouncing off 1.2300

The Euro declined in Wednesday's action as broad markets bid up the US Dollar across the broader currency bloc, reaching into the 1.2300 major handle before bouncing back slightly in the Asia session. The EUR/USD is now treading water around the 1.2325 mark heading into the European market.

Thursday will be seeing a slew of German macro data from within the Eurozone, kicking off with German Unemployment at 08:00 GMT, followed by preliminary Harmonized German CPI at 12:00 GMT. The German Unemployment Rate in March is forecast to come in at 5.3 percent, slightly lower than the previous reading's 5.4 percent, while year-on-year German CPI is expected at 1.6 percent, a healthy uptick from the previous period's 1.2 percent.

A successful beat to the headline figures could see a refreshed bull run in the EUR/USD, but as analysts at Westpac pointed out, slumping economic activity from the Eurozone could be on the cards, and macro numbers could start to disappoint more often than not.

EUR/USD Levels to watch

With Wednesday's Dollar rally on the books, today's action will hang off of the 1.2300 handle; a bearish breakdown will have to clear the major psychological level before running into further support from last week's low of 1.2240, while a bullish correction will run up against the 38.2 Fibo retrace level near 1.2370 with further resistance at the week's current high of 1.3475.