EUR/USD hits session lows near mid-1.1900s, German CPI and US data in focus

The EUR/USD pair finally broke down of its Asian session consolidation phase and dropped to a fresh session lows during early European session. 

The pair extended previous session's sharp pullback from the highest level since January 2015 and was being weighed down by a strong follow through US Dollar recovery. 

With risk aversion taking a backseat, a modest pickup in the US Treasury bond yields remained supportive of the greenback's recovery move from over 2-1/2 year lows. 

Meanwhile, the flash reading of Spanish CPI print for August did little to provide any fresh bullish impetus to the shared currency, with broad based USD recovery acting as an exclusive driver of the pair's movement on Wednesday. 

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Today's Euro-zone economic docket also features the release of German Prelim CPI print for August, while from the US, the ADP report and the first revision of Q2 GDP would grab the spotlight later during the NA session.

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Technical levels to watch

Currently trading around mid-1.1900s, immediate support is pegged near 1.1915 level, which if broken could extend the pair's corrective slide towards 1.1865 support area. 

On the flip side, 1.1975-80 zone now seems to have emerged as immediate resistance, above which the pair is likely to move back above the key 1.20 psychological mark and head back towards 1.2030-35 area.