EUR/USD off highs, back to 1.0940 ahead of EMU’s CPI

The shared currency is accelerating its daily upside, lifting EUR/USD to fresh session highs near 1.0950.

EUR/USD attention to CPI

The pair has recovered the positive territory following a pick up of the risk-off sentiment after a negative close in both China and Japan, with the Shanghai benchmark receding more than 4% for the day.

Spot has managed to revert the initial drop to the 1.0910 area posted during overnight trading, as market participants were adjusting to Friday’s auspicious PCE figures in the US economy.

EUR/USD levels to watch

The pair is now up 0.01% at 1.0941 facing the next resistance at 1.0971 (55-day sma) ahead of 1.1048 (200-day sma) and then 1.1123 (38.2% Fibo of December up-move). On the downside, a break below 1.0867 (76.4% Fibo of December up-move) would target 1.0777 (low Jan.21) en route to 1.0709 (2016 low Jan.5).

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