EUR/USD trims gains, back below 1.20 on EMU CPI

• The pair leaves session tops and returns to sub-1.20 levels.
• EMU’s flash CPI came in below estimates at 1.2% YoY.
• US ISM Non-manufacturing, Trade Balance, next of relevance.

EUR/USD abandoned the area of session tops beyond 1.20 the figure and has now returned to the 1.1980 region in the wake of EMU’s flash inflation figures.

EUR/USD now looks to US data

After breaking above the 1.2000 handle and retest once again the proximity of the 200-day sma, the pair met some sellers and is now hovering over the 1.1985/80 band.

Adding to the correction lower, advanced inflation figures in Euroland came in below estimates today and showed headline consumer prices in the region are expected to rise at an annualized 1.2% in April and 0.7% when stripping Food and Energy costs.

Later in the session, US ISM Non-manufacturing will be the salient event seconded by March’s Trade Balance figures, Initial Claims, Durable Goods Orders and Factory Orders.

EUR/USD levels to watch

At the moment, the pair is up 0.25% at 1.1981 and a break above 1.2033 (high May 2) would target 1.2113 (10-day sma) en route to 1.2210 (high Apr.26). On the other hand, the immediate support lines up at 1.1938 (low May 2) seconded by 1.1916 (2018 low Jan.19) and finally 1.1718 (monthly low Dec.12 2017).