EUR/USD: Struggle with 1.1220 continues ahead of EZ CPI

The EUR/USD pair continues its struggle to take-out key resistance located just ahead of 1.1220, as markets digest latest comments from ECB’s Visco on QE program.

EUR/USD finds support near 50-DMA at 1.1208

Currently, EUR/USD trades modestly flat at 1.1220, rebounding from lows reached just ahead of 1.12 handle. The main currency pair is seen fighting hard to regain the bids amid risk-off market profile, with the greenback broadly bid in light of upbeat US GDP numbers and recent Fed speaks, which continue to back the case for a Fed rate hike this year.

The euro remains under pressure against the US dollar as we head into early Europe, as the European traders hit the desk and react negatively to the dovish comments from ECB’s Visco, noting that QE could last beyond March 2017.

In the day ahead, the shared currency will continue to remain under pressure amid looming concerns surrounding the European banking sector, especially after the Deutsche bank-related recent development. Deutsche Bank shares slumped to a record low on Thursday, after a report that trading clients had withdrawn excess cash and positions held in the largest German lender.

On the data front, immediate focus now remains on the German retail sales data due out shortly, while the Eurozone CPI and jobs data will be also eyed in the European session ahead.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.1262 (Sept 28 high). A break beyond the last, doors will open for a test of 1.1286 (Sept 15 high) and from there to 1.1300 (round figure). On the flip side, the immediate support is placed at 1.1209 (hourly 200-SMA) below which 1.1145 (static support) and 1.1119 (Sept 21 low) could be tested.