EUR/USD trims losses, back around 1.1470

After dropping to lows near 1.1430 earlier in the session, EUR/USD has managed to pick up some pace and is now re-testing 1.1460/70 band.

EUR/USD bid after US data

The pair finds some extra traction after another miss in the US docket. This time the NY Empire State index came in at 9.80 for the current month vs. 15.00 forecasted and June’s 19.80.

USD-weakness remains the sole driver for the pair’s price action for the time being, while cautiousness is seen growing bigger as we get closer to the critical ECB meeting later in the week (Thursday).

Recall that other than the selling mood around the buck, rising expectations of a potential tapering of the QE programme by the ECB on Thursday keep bolstering the upside momentum in EUR, although it seems that the September meeting appears as a more suitable candidate for such an announcement.

Data wise in the euro bloc, CPI final figures for the month of June showed consumer prices rising at an annualized 1.3% and 1.1% when stripping food and energy costs.

EUR/USD levels to watch

At the moment, the pair is losing 0.01% at 1.1468 and a breach of 1.1439 (2015-2016 support line) would target 1.1413 (10-day sma) en route to 1.1369 (low Jul.13). On the upside, the immediate hurdle lines up at 1.1475 (overnight top Jul.17) followed by 1.1489 (2017 high Jul.12) and finally 1.1500 (psychological handle).

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