EUR/USD survives above 1.1200 ahead of EMU, German data

EUR/USD is clinging to its daily gains vs. the greenback during the second half of the week, hovering over 1.1220/25 ahead of releases in Germany and EMU.

EUR/USD now looks to German CPI

Spot seems now stabilized around current levels after the recent spike was unable to break above the 1.1280 area (Monday), where sits the resistance line off 2016 tops seen in early May.

Alternating RO/RO trends continue to be the leitmotif so far this week, all amidst a slow recovery in the greenback after the steady stance of the FOMC at its meeting last week.

EUR will be in the spotlight later in the European session in light of the advanced inflation figures in Germany for the current month, while EMU’s Economic Sentiment and other confidence gauges will also drive the attention to the region.

Across the pond, the final Q2 GDP figures are due followed by Core PCE, the usual weekly report on the US labour market and Pending Home Sales.

When comes to Fed speakers, today we have Philly Fed P.Harker (2017 voter, hawkish), Atlanta Fed D.Lockhart (2018 voter, dovish), J.Powell (permanent voter, neutral), Minneapolis Fed N.Kashkari (2017 voter, neutral) and Kansas City Fed E.George (voter, hawkish), all along the speech by Chair J.Yellen on Conversation with conference participants At the Banking and the Economy: A Forum for Minority Bankers.

EUR/USD levels to watch

The pair is now gaining 0.06% at 1.1225 and a breakout of 1.1266 (resistance line off 2016 high) would target 1.1279 (high Seo.26) en route to 1.1329 (high Sep.8). On the other hand, the immediate support lines up at 1.1188 (low Sep.27) ahead of 1.1160 (200-day sma) and finally1.1130 (2014-2016 support line).