EUR/USD eases from tops near 1.2390, US CPI, Draghi eyed

• The pair has faded the earlier spike to tops in the 1.2390 region.
• The greenback remains offered albeit off daily lows around 89.50.
• ECB’s Draghi due to speak next. US CPI, FOMC minutes expected later.

After briefly testing 2-week tops in the boundaries of 1.2390, EUR/USD has now retraced part of that advance and returns to the 1.2370/65 band.

EUR/USD focused on Draghi, US CPI

Spot is looking to extend the ongoing strong recovery from the 1.2200 neighbourhood, although gains appear so far limited to the area just below the critical 1.2400 the figure.

Sustaining the pair’s up move, the greenback remains on the defensive for yet another day and trades in multi-day lows around 89.50/40 when tracked by the US Dollar Index (DXY).

Later in the session, ECB’s Mario Draghi is due to speak followed by a Q&A session, while CPI figures and the FOMC minutes will be in centre stage in the US calendar.

EUR/USD levels to watch

At the moment, the pair is gaining 0.09% at 1.2366 and a break above 1.2388 (high Apr.11) would pave the way for a test of 1.2478 (high Mar.27) and finally 1.2538 (high Jan.25). On the downside, immediate contention emerges at 1.2321 (21-day sma) seconded by 1.2305 (10-day sma) and finally 1.2214 (low Apr.6).