EUR/USD reverses early dip, turns neutral ahead of German CPI

The EUR/USD pair quickly recovered around 20-25 pips from intraday swing lows and might now be headed towards the top end of its daily trading range. 

For the third consecutive session, the pair managed to attract some dip-buying interest near the very important 200-day SMA and the latest leg of an uptick over the past hour or so was supported by a modest intraday US Dollar pullback.

Optimism over US-China trade talks turned out to be short-lived and fizzled out rather quickly after China's foreign ministry spokesman was out with a clarification saying that they were not aware of any report on a tentative trade truce between the two countries. 

The news exerted some pressure on the greenback and turned out to be the only factor providing a modest lift to the major. However, a positive tone around the US Treasury bond yields helped limit the USD slide and kept a lid on any strong follow-through up-move for the major.

The pair remained well below the 1.1400 round figure mark as investors now look forward to the prelim German consumer inflation figures for some meaningful impetus. Later during the early North-American session, the final US Q1 GDP print might further collaborate towards producing some meaningful trading opportunities.

Technical levels to watch