EUR/USD treading water above 1.0900 ahead of CPI

The offered bias around the greenback remains supportive of EUR/USD throughout the week, currently consolidating above the 1.0900 limestone.

EUR/USD attention to German, US data

The pair remains on its firm way to close the first week with gains after three consecutive pullbacks following the rejection from highs in the 1.1330 region seen in September.

However, further gains in spot seems limited in the mid-1.0900s, as the retracement of the greenback appears shallow against the backdrop of increasing bets on a rate hike by the Fed at its December meeting. Currently, the probability of such scenario remains above 70% according to CME Group’s FedWatch tool.

In the data space, advanced inflation figures tracked by the CPI and the HICP for the current month are due in Germany, ahead of flash US GDP figures during the third quarter and the final print of October’s Reuters/Michigan index.

EUR/USD levels to watch

The pair is now up 0.07% at 1.0905 facing the next resistance at 1.0947 (high Oct.26) followed by 1.1016 (7-month resistance line) and then 1.1041 (post-ECB spike Oct.20). On the other hand, a breakdown of 1.0820 (low Mar.10) would target 1.0709 (2016 low Jan.5) en route to 1.0538 (low Dec.3 2015).