EUR/USD keeps the red near mid-1.2000s post-EZ CPI

   •  Headline EZ CPI ticks lower to 1.4% y-o-y.
   •  Core CPI beats estimates but fails to lift EUR.
   •  Focus shifts to the key US jobs report. 

The shared currency held weaker against its American counterpart, with the EUR/USD pair struggling near mid-1.2000s post-EZ CPI print.

The pair stalled its retracement slide from the 1.2080-90 supply zone, marked by 2017 yearly highs, and had a rather muted reaction to the release of flash EZ inflation figures for December. 

The headline CPI matched consensus estimates and edged lower to a yearly rate of 1.4% during December. The real emphasis was on core inflation but even a better-than-expected y-o-y reading of 1.1% did little to provide any boost to the common currency.

With the key EZ data out of the way, repositioning trade is likely to play a dominant role in determining the pair's price action ahead of the keenly watched US jobs report - NFP.

Technical levels to watch

A follow-through weakness has the potential to continue dragging the pair further towards the key 1.20 psychological mark, below which the slide could further get extended towards 1.1945-40 horizontal support.

On the upside, the 1.2080-90 area remains immediate strong resistance, which if conquered should trigger a sharp rally towards its next major hurdle near the 1.2165 region.