EUR/USD parked around 1.1960 level

The EUR/USD pair struggled to build on early modest uptick and retreated around 20-pips from session tops, near the 1.1980 region.

Yesterday's dovish comments from the ECB board member Benoît Coeuré that a nagging exchange-rate shock could hold back inflation, continues to undermine the shared currency. 

This coupled with a strong follow through up-move in the US Treasury bond yields, which although has failed to provide a fresh bullish impetus to the US Dollar was still seen keeping a lid on the pair's up-move.

The pair's lackluster performance could also be attributed to some cross-driven weakness, with the EUR/GBP cross plummeting to one-month lows near the key 0.90 psychological mark following the release of UK inflation results. 

Moving ahead, the pair remains at the mercy of broader market risk sentiment amid relatively thin economic docket, featuring the release of JOLTS Job Openings data from the US.

   •  EUR/USD expected to test 1.1908 – Commerzbank

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes: "An immediate resistance comes at 1.1980, but the pair would need to recover above 1.2030 to regain its upward strength, and attempt an extension up to the 1.2060/70 region. Below the mentioned low of 1.1945 on the other hand, the pair can extend its decline towards 1.1900 during the next sessions."