EUR/USD finds buyers near 1.1730, eyes on EZ CPI

The EUR/USD pair stalled its corrective slide ahead of the European opening bells, as the bears take a breather ahead of the Eurozone inflation data due on the cards at 0900GMT today.

EUR/USD: Core CPI figures closely watched

Having failed several attempts to take-out stiff resistances located around 1.1760 region, the main currency pair ran into fresh offers and extended its move lower towards 1.1700 levels amid a minor-USD recovery across the board, after Friday’s slump triggered by unimpressive US Q2 advance GDP data.

However, over the last hour, the spot is seen making minor-recovery attempts and looks to regain 1.1750 levels, as the European traders hit their desk and react negatively to the US GDP report, dumping the greenback broadly once again.

The major also finds some support from persisting risk-aversion amid renewed geopolitical tensions surrounding North Korea missile threat, which boosts the funding currency status of the Euro.

Also, upbeat German retail sales data (monthly figures) also provide fresh lift to the common currency, taking the rate back towards the mid-point of 1.17 handle. Germany Retail Sales (MoM) came in at 1.1%, above expectations (0.2%) in June

Attention now turns towards the Eurozone flash CPI figures for fresh direction on the EUR/USD pair, as the inflation data will hold the key for the next ECB policy move.

EUR/USD: Pullback towards 1.1300 on the cards? - TDS

EUR/USD Technical Set-up    

According to Karen Jones, Analyst at Commerzbank noted: “EUR/USD is at the top of a 3 month channel and poised to encounter its 200 week ma at 1.1788: The market has reached its 200 week ma and it is also at the top of a 3 month channel and we would look for signs of profit taking here. Note that the daily RSI has not confirmed the new high. 
Nearby support is provided by the accelerated uptrend at 1.1561 and the 3 month uptrend at 1.1425 and while above here, there is scope for further gains.”