EUR/USD on the offers below 1.1650 ahead of Eurozone data

• Notable USD demand in Asia
• 1.1600 levels holds the key
• A busy EUR calendar ahead

The EUR/USD pair is seen gradually reversing a part of yesterday’s solid rebound, as the bears continue to guard 1.1655/60 barrier amid resurgent USD buying across the board.

EUR/USD: Eyes on Eurozone CPI, GDP

The spot remains under pressure, as we head towards the European opening bells, as the US dollar consolidates its overnight recovery against its main peers. The greenback and Treasury yields stall its sell-off, as markets look past over the US political drama, with the focus now shifting back on the Eurozone fundamentals.

The EUR traders brace for the key macro data from the Eurozone, which includes the flash CPI and GDP reports due on the cards at 1000 GMT. Markets are widely expecting both the critical data to edge lower in October, which could add to the negative bias seen in the EUR over the last weeks.

The major also awaits the US President Trump’s decision on the next Fed Chair as well as the all-important Fed policy verdict for fresh direction on the buck.

EUR/USD Technical Levels

Haresh Menghani, Analyst at FXStreet explained: “Weakness below the mentioned (1.1600) is likely to accelerate the slide towards 1.1555-50 intermediate support before the pair eventually drops to test the key 1.1500 psychological mark. Conversely, a sustained recovery back above 1.1665-70 immediate hurdle could trigger a short-covering bounce, but the up-move seems more likely to be capped at the 1.1700 handle.”