EUR/USD losing the grip around 1.1970

The single currency is trading almost unchanged vs. the greenback on Wednesday, with EUR/USD gyrating around the 1.1970 region ahead of the European open.

EUR/USD focus on German, US data

After reaching fresh cycle highs near 1.2070 on Tuesday, the pair shed around a cent and is now looking to stabilize in the 1.1970 area ahead of key releases in both Euroland and the US dockets.

Renewed selling pressure around the buck lifted spot well above the psychological 1.2000 handle yesterday, quickly taking out the critical resistance area at 1.2040/45 (July 2012 lows) and advancing to 1.2070, where sellers re-emerged.

Looking ahead German/Spanish advanced inflation figures for the month of August are due along with sentiment/confidence gauges in the euro area.

Across the pond, the ADP report is due seconded by the second revision of Q2 GDP and the speech by FOMC’s J.Powell (permanent voter, centrist).

EUR/USD levels to watch

At the moment, the pair is losing 0.05% at 1.1966 facing the immediate support at 1.1947 (low Aug.29) followed by 1.1851 (10-day sma) and then 1.1818 (21-day sma). On the flip side, a break above 1.2069 (2017 high Aug.29) would open the door to 1.2167 (50% Fibo of the 2014-2017 drop) and finally 1.2186 (high Dec 25 2014).