EUR/USD comes down to challenge 1.12 ahead of CPI

The single currency is now losing the grip vs. the buck, sending EUR/USD to the lower end of the range near 1.1200 the figure.

EUR/USD weaker ahead of data

Spot is losing momentum after the opening bell in Euroland on Friday, retreating to the area of daily lows and putting the 1.1200 key support under renewed pressure.

The pair is now trading in the negative territory for the first time after two consecutive advances, always within the broader range and succumbing to the directionless sentiment around the global markets.

Poor results from German Retail Sales in August seem to have collaborated with the downbeat mood in spot, ahead of the preliminary inflation figures in the euro area for the month of September, expected to come in higher than August’s.

On the US data front, Personal Income/Spending, PCE figures and the final print of the Reuters/Michigan index will take centre stage ahead of the speech by Dallas Fed R.Kaplan (2017 voter, neutral).

In the meantime, attention remains on the resistance line off 2016 top (May 3) around 1.1270, which continues to cap occasional bullish attempts and keep the air under downside pressure.

EUR/USD levels to watch

The pair is now losing 0.08% at 1.1210 facing the immediate support at 1.1188 (low Sep.27) ahead of 1.1161 (200-day sma) and finally 1.1127 (2014-2016 support line). On the flip side, a break above 1.1271 (resistance line off 2016 high) would target 1.1279 (high Sep.26) en route to 1.1329 (high Sep.8).