EUR/USD testing highs near 1.0920 ahead of German CPI

Pablo Piovano FXStreet

The softer tone in the greenback is helping EUR/USD to print daily highs in the 1.0920 region ahead of key German releases.

EUR/USD attention to German CPI, US GDP

The pair remains on its way to close the first week with gains after three consecutive pullbacks, managing to bounce off lows in the mid-1.0800s although the upside seems to have run out of steam in the 1.0950 zone, coincident with July’s troughs and the 2014-2016 resistance line.

The quite resilient tone in spot obbeys almost exclusively to USD-dynamics, although the prospects of extra gains appear clouded by increasing expectations of a Fed’s rate hike by year-end, which remains supportive of the buck.

Later in the session advanced CPI figures for the current month are due in Germany, ahead of flash US GDP figures during the third quarter and the final print of October’s Reuters/Michigan index.

EUR/USD levels to watch

The pair is now up 0.18% at 1.0917 facing the next resistance at 1.0947 (high Oct.26) followed by 1.1016 (7-month resistance line) and then 1.1041 (post-ECB spike Oct.20). On the other hand, a breakdown of 1.0820 (low Mar.10) would target 1.0709 (2016 low Jan.5) en route to 1.0538 (low Dec.3 2015).

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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