EUR/USD: Bears eyeing a test of 1.0400 ahead of German CPI

EUR/USD witnessed a sharp U-turn as the European session experienced a notable USD demand amid prevalent risk-friendly market environment.

EUR/USD ignored upbeat German jobs.

Currently, the spot drops -0.34% to fresh session lows of 1.0418, losing almost 70-pips form daily tops. The main currency pair failed to sustain the Asian recovery and slipped sharply over the last hours, as the USD bulls jumped back on the bids and resumed the ongoing upbeat momentum against a basket of major currencies.

Moreover, a fresh bout of risk-on trades seen in Europe, also weighed down on the funding currency status of the euro. While at the same the time, the EUR traders were left unimpressed by better-than expected German employment data.

Markets now await a better German prelim CPI report due later today, in order to rescue the bulls, while the US ISM manufacturing PMI will be also closely eyed for fresh take on the USD moves.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0465 (10-DMA). A break beyond the last, doors will open for a test of 1.0483 (5-DMA) and from there to 1.0500 (zero figure). On the flip side, the immediate support is placed at 1.0404 (Dec 29 low) below which 1.0369 (Dec 28 low) and 1.0350 (multi-year low) could be tested.