EUR/USD: Will it regain 1.2000 ahead of German CPI?

The EUR/USD pair managed to regain bids in the Asian session, having reversed a sharp dip to near mid-1.19s, as focus shifts towards the economic releases due out from both continents in the day ahead.

EUR/USD back above 5-DMA at 1.1961                                    

The spot stalled its corrective slide from more-than two year tops in early Asia, and from there embarked upon a tepid recovery mode, as the bulls look to regain 1.20 handle on rising inflation expectations in Germany.

Moreover, the US dollar is seen reversing a part of its yesterday’s rebound from multi-year lows versus its major peers, allowing the EUR bulls to breathe a sigh of relief, following a 120-pips fall witnessed a day before.

The EUR/USD pair witnessed good two-way business yesterday, initially haven printed fresh 2-1/2 year tops at 1.2069 levels on North Korea tensions induced sell-off in Treasury yields and US dollar, but later reversed entire intraday gains amid improvement in risk sentiment, as North Korea fears receded.  

Later today, the major will continue to get influenced by the USD dynamics and risk trends ahead of the German CPI, US GDP and ADP jobs report.

EUR/USD Technical Set-up  

The pair remains exposed to further downside risks, as explained by Valeria Bednarik, Chief Analyst at FXStreet, “for the upcoming sessions, 1.1985, Monday's low is the immediate support, with a break below it favoring a steeper correction down to the 1.1900/20 region, still falling short at that point to confirming a top. Further gains beyond the mentioned daily high should lead to a test of January 2015 high of 1.2101. Support levels: 1.1985 1.1950 1.1910 Resistance levels: 12030 1.2070 1.2100.”