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EUR/USD trims gains, near 1.2270 ahead of EMU CPI

4/4/2018, 2:33:57 PMBasics of Trading
EUR/USD trims gains, near 1.2270 ahead of EMU CPI

After climbing to the 1.2290 area during early trade, EUR/USD seems to have lost some upside momentum and is now receding to the vicinity of 1.2270.

EUR/USD now looks to data

The pair has accelerated the weekly leg lower and it has broken below the key short term support line off 2018 lows (January), always amidst a moderate rebound in the demand for the greenback.

The lack of relevant publications/headlines in Euroland left the bulk of the price action to the mercy of USD-dynamics during the first half of the week and, as of late, headlines from the potential US-China trade war, which have been supportive of the buck somewhat.

Later in the session, EUR should under pressure in light of the release of key advanced inflation figures in the euro region for the month of March.

Later in the NA session, the ADP report is expected at 208K in March, while Factory Orders, Durable Goods Orders and the ISM Non-manufacturing will also keep the attention on the greenback.

Additionally, St.Louis Fed J.Bullard (2019 voter, centrist) and Cleveland Fed L.Mester (voter, hawkish) are also due to speak.

EUR/USD levels to watch

At the moment, the pair is advancing 0.05% at 1.2277 and a break above 1.2330 (21-day sma) would target 1.2478 (high Mar.27) en route to 1.2537. On the other hand, immediate contention emerges at 1.2254 (low Apr.3) followed by 1.2241 (low Mar.21) and finally 1.2206 (low Feb.9).