EUR/USD through 1.1900 on EMU’s CPI

The single currency is recovering part of its lost shine on Thursday, now lifting EUR/USD beyond the 1.1900 handle, or daily tops.

EUR/USD bid after CPI

The pair met fresh buyers after advanced inflation figures in the euro area showed consumer prices are expected to rise at an annualized 1.5% during August, while prices stripping food and energy costs are seen gaining 1.3% over the last twelve months.

The data bodes well for EUR-bulls in light of the upcoming and key ECB meeting on September 7, although the recent sharp appreciation of the exchange rate prompts market participants to keep a somewhat cautious stance.

In addition, German unemployment rate stayed unchanged at 5.7% in August, while retail sales contracted more than expected 1.2% in July.

Across the pond, personal income/spending, pending home sales, initial claims and the more relevant PCE are all due.

EUR/USD levels to watch

At the moment, the pair is up 0.05% at 1.1889 and a break above 1.1905 (high Aug.31) would open the door to 1.2069 (2017 high Aug.29) and finally 1.2167 (50% Fibo of the 2014-2017 drop). On the flip side, the immediate support aligns at 1.1860 (10-day sma) followed by 1.1816 (21-day sma) and then 1.1707 (4-month support line).