EUR/USD jumps to session high, eyeing 1.0900 handle ahead of EZ CPI

The EUR/USD pair seems to have regained some fresh traction and snapped two-consecutive days of losing streak, reversing part of downslide led by cautious ECB.

The pair quickly reversed early losses and inched back closer to the 1.0900 handle amid some renewed US Dollar selling interest, against the backdrop of escalating tension between the US and N. Korea. 

Market seems to have digested Thursday's cautious comments by the ECB President Mario Draghi, during the post meeting press conference, pointing to uncertainty over Euro-zone’s inflation and growth outlook. Should today's flash release of Euro-zone inflation figures confirms central bank's outlook, it could lead to additional weakness for the shared currency.

  When is Eurozone flash CPI and how could affect EUR/USD?

Meanwhile, disappointment from recent US macro data, pointing to a possible phase of economic slowdown, further collaborated to the prevalent bearish sentiment surrounding the greenback. Hence, investors on Friday eagerly await for the first estimate US GDP numbers, due later during the day.

  US: Q1 GDP tracking estimate lowered by 0.6pp to 0.2% from 0.8% - Nomura

Technical levels to watch

A follow through momentum above the 1.0900 handle could get extended towards 1.0925-30 resistance ahead of multi-month highs resistance near mid-1.0900s. On the downside, 1.0850 area (nearing 200-day SMA) now seems to have emerged as immediate support, which if broken might drag the pair below weekly lows support near 1.0820 level towards testing the 1.0800 handle.