EUR/USD stays above 1.2200 on EMU CPI

• Advanced CPI figures in Euroland rose 1.2% on a yearly basis.
• The pair finds good support in the 1.2200 neighbourhood.
• US flash Q4 GDP figures and pending home sales next on tap.

EUR/USD remains on the defensive on Wednesday although it seems to have found moderate support in the 1.2200 neighbourhood earlier in the session.

EUR/USD now looks to GDP figures

The pair remains entrenched into the negative territory today while market participants continue to digest yesterday’s hawkish congressional testimony by Chief J.Powell.

In addition, preliminary inflation figures in the euro area showed consumer prices are expected to rise at an annualized 1.2% in February, matching prior surveys. Consumer prices excluding food and energy costs are seen advancing 1.0%, also matching previous estimates.

In the meantime, spot stays depressed amidst the continuation of the bid fashion around the buck, with the US Dollar Index navigating in multi-day peaks and yields of the key US 10-year note sidelined around 2.90%/2.91% for the time being.

On the data front across the pond, advanced Q4 GDP figures are also due seconded by January’s Pending Home Sales.

EUR/USD levels to watch

At the moment, the pair is losing 0.16% at 1.2213 and a breach of 1.2199 (low Feb.28) would open the door to 1.2167 (50% Fibo of 2014-2017 drop) and finally 1.2165 (low Jan.18). On the flip side, the next hurdle lines up at 1.2334 (10-day sma) seconded by 1.2349 (21-day sma) and then 1.2537 (high Jan.25).