EUR/USD flirting with daily highs near 1.0690, EMU CPI on sight

The single currency now seems to have recovered the smile, lifting EUR/USD closer to the 1.0700 handle amidst some selling mood around the buck.

EUR/USD now looks too EMU CPI

After three consecutive pullbacks, the pair is now showing some signs of life in the upper 1.0600s against the backdrop of some renewed offered bias around the greenback.

Spot shed more than two cents since Monday’s tops just above 1.0900 the figure to yesterday’s low in the vicinity of 1.0670, always on the back of the sharp pick up in the demand for the US Dollar while ECB headlines have been weighing on sentiment as well, prompting German yields to deflate from recent highs.

Ahead in the session, preliminary EMU’s inflation figures gauged by the CPI should keep investors entertained, particularly after yesterday’s lower-than-expected CPI figures in Germany, somewhat reinforcing the ECB view that underlying inflation trends stay subdued.

On the USD-side, inflation figures tracked by the PCE are due followed by Consumer Income/Spending, the Chicago PMI and the final Reuters/Michigan results for the current month.

Additionally, Minneapolis Fed N.Kashkari (voter, dovish) and St. Louis Fed J.Bullard (2019 voter, centrist) are also due to speak.

EUR/USD levels to watch

At the moment the pair is gaining 0.11% at 1.0688 and a break above 1.0709 (20-day sma) would target 1.0772 (high Mar.30) en route to 1.0827 (high Mar.29). On the other hand, the immediate support aligns at 1.0669 (low Mar.30) followed by 1.0626 (100-day sma) and finally 1.0597 (low Mar.14).