EUR/USD consolidative around 1.1870, EMU CPI eyed

The single currency continues its correction lower from recent tops beyond 1.2000 the figure vs. the buck, now taking EUR/USD to the 1.1880/70 band ahead of the opening bell in Euroland.

EUR/USD now looks to EMU data

The pair is down for the third session in a row so far today, shedding around two cents since Tuesday’s tops in the vicinity of 1.2070 and following the ‘gravestone doji’-like candle recorded on that day.

The down move in spot has been in tandem with a strong recovery of the greenback, lifting the US Dollar Index (DXY) back to the 93.00 neighbourhood after fresh cycle highs around 91.60 seen on Tuesday.

Easing geopolitical tensions, profit taking sentiment and a somewhat calm scenario in the US politics has collaborated with the rebound in the greenback, while positive prints from the German advanced inflation figures for the month of August released yesterday did nothing to curb the downside.

Looking ahead, EMU’s flash inflation figures for the month of August are due later, while personal income/spending, pending home sales, initial claims and the more relevant PCE are all expected across the pond.

EUR/USD levels to watch

At the moment, the pair is losing 0.06% at 1.1876 facing the immediate support at 1.1859 (10-day sma) followed by 1.1816 (21-day sma) and then 1.1707 (4-month support line). 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).