EUR/USD probing lows near 1.0710 post-CPI

EUR/USD is now extending its correction lower, testing the area of daily lows in the 1.0715/10 band.

EUR/USD weaker as USD recovers

The pair stayed mostly apathetic after the final inflation figures in the euro area showed consumer prices rising at an annualized 1.5%, matching the preliminary readings. On a monthly basis, prices rose 0.8% while Core CPI rose 0.7% over the last twelve months.

Further data saw EMU’s trade surplus at €17.8 billion in February], bettering prior surveys and reverting January’s €0.6 billion deficit.

Spot remains under pressure today, following some moderate recovery of the greenback after dropping to fresh 3-week lows on Tuesday when tracked by the US Dollar Index. Collaborating with the Dollar’s advance, US yields are flirting with daily highs after yesterday’s deep pullback.

Data wise across the pond, the weekly report on crude oil inventories by the EIA is due later in the NA session along with the speech by Boston Fed E.Rosengren (2019 voter, hawkish) and the Fed’s Beige Book.

EUR/USD levels to watch

At the moment the pair is losing 0.18% at 1.0712 and a break below 1.0689 (20-day sma) would target 1.0660 (55-day sma) en route to 1.0635 (low Apr.18). On the upside, the initial resistance is located at 1.0737 (high Apr.18) followed by 1.0843 (200-day sma) and finally 1.0905 (high Mar.27).