EUR/USD probing lows near 1.0860, EMU CPI eyed

The single currency is prolonging its correction lower from peaks near 1.0930 vs. the buck earlier in the week, now sending EUR/USD to test the lower bound of the range near 1.0860.

EUR/USD attention to EMU, US data

The pair has quickly faded the spike to level beyond 1.0900 the figure on Thursday following an initial hawkish tone by President M.Draghi at his press conference after the ECB left unchanged its monetary status quo.

However, the selling pressure started to gather pace around EUR after the Governing Council said it did not discussed easing the current accommodative bias while Draghi asserted once again that the bank’s assessment on inflation stays unchanged.

In the data space, EMU’s advanced inflation figures for the month of April are the salient point in Euroland today, while flash Q1 GDP figures will take centre stage in the US docket.

EUR/USD levels to watch

At the moment, the pair is losing 0.09% at 1.0863 facing the immediate support at 1.0850 (low Apr.27) seconded by 1.0833 (200-day sma) and finally 1.0805 (23.6% Fibo of the April rally). On the flip side, a break above 1.0933 (high Apr.27) would target 1.0951 (2017 high Apr.25/26) en route to 1.1000 (psychological handle).