EUR/USD drops to lows near 1.1120, EMU CPI eyed

The shared currency is losing the grip early in Europe today, sending EUR/USD to test daily lows in the 1.1130 area.

EUR/USD attention to German, EMU data

Spot is giving away part of yesterday’s gains, keeping the trade in the low-1.1100s while gains appear to be capped in the 1.1150/60 area during the first half of the week.

In the meantime, the rally in USD remains everything but abated so far, fuelled by expectations of a rate hike by the Fed at the June/July meeting.

On the data front, German Retail Sales has contracted 0.9% on a monthly basis in April, missing consensus. Later in Europe, German jobless rate is due followed by advanced inflation figures in the euro area for the month of May.

EUR/USD levels to watch

The pair is now retreating 0.08% at 1.1130 and a breakdown of 1.1096 (200-day sma) would target 1.1055 (low Mar.16) en route to 1.0820 (low Mar.10). On the flip side, the initial up barrier lines up at 1.1178 (100-day sma) followed by 1.1246 (high May 23) and finally 1.1258 (20-day sma).