EUR/USD attempting a bounce to 1.0740, German CPI eyed

After testing fresh multi-day lows near 1.0730, EUR/USD is now attempting to regain the 1.0740 area and beyond ahead of key German releases.

EUR/USD attention to German CPI

Spot remains entrenched into the negative territory today, down for the third session in a row amidst quite a solid recovery in the greenback and a re-assessments of investors after the recent comments by ECB officials.

The pair is shedding more than a cent since Monday’s tops just above 1.0900 the figure, recording fresh 2017 peaks at the same time, while market participants are expecting key advanced German inflation figures for the current month. Consensus among traders see German consumer prices rising at an annualized 2.0% in March while the broader HICP is expected to gain 2.0% over the last twelve months.

In the meantime, the strong rebound of the buck saw the US Dollar Index (DXY) briefly climbing above the psychological 100.00 handle, just to lose some ground soon afterwards.

In the US data space, the third revision of the Q4 GDP is due seconded by Initial Claims and speeches by New York Fed W.Dudley (permanent voter, centrist), Cleveland Fed L.Mester (2018 voter, hawkish), Dallas Fed R.Kaplan (voter, hawkish) and San Francisco Fed J.Williams (2018 voter, hawkish).

EUR/USD levels to watch

At the moment the pair is losing 0.21% at 1.0741 facing the immediate support at 1.0738 (low Mar.29) ahead of 1.0709 (20-day sma) and finally 1.0704 (low Mar.16). On the flip side, a break above 1.0827 (high Mar.29) would target 1.0874 (200-day sma) en route to 1.0905 (high Mar.27).