EUR/USD soggy around 1.2300 ahead of EMU CPI

Spot comes down from 1.2350 on renewed USD-strength.
USD regains the bid tone following Wednesday’s correction.
EMU’s final CPI figures in January and Fedspeak next on the docket.

Pablo Piovano FXStreet

After yesterday’s positive performance, EUR/USD appears to have regained the downside at the end of the week and it has now returned to the 1.2300 neighbourhood.

EUR/USD attention to EMU data, Fedspeak

The pair seems to be consolidating in the lower bound of the weekly range near 1.2300 the figure, coming back to current levels after EUR-bulls failed to sustain the rebound beyond the 1.2350 on Wednesday.

On the USD-side, sellers have turned up above the 90.00 handle and forced the US Dollar Index to slip back to the 89.80 region, where it is now looking to find a solid base.

On the data front, final January CPI data in the euro region and German Q4 GDP figures will be the most relevant releases in Euroland.

Across the Atlantic, speeches by New York Fed W.Dudley (permanent voter, centrist), Boston Fed E.Rosengren (2019 voter, centrist), Cleveland Fed L.Mester (voter, hawkish) and San Francisco Fed J.Williams (voter, centrist) should keep the attention around the buck.

EUR/USD levels to watch

At the moment, the pair is losing 0.24% at 1.2301 facing immediate contention at 1.2260 (low Feb.22) followed by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18). On the upside, a breakout of 1.2352 (high Feb.22) would target 1.2369 (21-day sma) en route to 1.2537 (high Jan.25).

Author

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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