EUR/USD comes under pressure and tests 1.0800

• EUR/USD extends the bearish note to the 1.0800 region.
• German final April CPI came in a tad above estimates at 0.4% MoM.
• US Initial Claims will take centre stage later in the NA session.

The shared currency remains on the defensive in the second half of the week, with EUR/USD now putting the 1.0800 level to the test.

EUR/USD looks to data, risk trends

EUR/USD is losing ground for the second consecutive session on Thursday, always on the back of the improved tone in the greenback and the broad-based consolidative sentiment in the global markets.

In the meantime, many European economies remain on their way to return to some normality albeit at a gradual pace and despite the recent increase in infected cases in Germany, South Korea and China.

On the dollar-side of the equation, J.Powell reiterated on Wednesday that negative rates are off the table, while he emphasized once again the need for further fiscal support to fight the coronavirus outbreak.

In the euro docket, German final inflation figures showed the CPI rose 0.4% MoM in April and 0.9% on a yearly basis, a tad above the preliminary readings. Moving forward, Spanish final CPI is next on tap seconded by the speech by ECB’s L. De Guindos. In the US, all the attention will once again be on the release of the weekly Claims.

What to look for around EUR

EUR/USD appears to have met some decent contention in the 1.0780 so far this week in a context of poor results from fundamentals in the region and a broad-based consolidation theme. In the meantime, the solid position of the current account in the euro area coupled with the gradual re-opening of the economy in the region appear to have limited occasional weakness in the currency.

EUR/USD levels to watch

At the moment, the pair is receding 0.11% at 1.0806 and faces the next support at 1.0784 (weekly low May 12) seconded by 1.0766 (weekly low May 7) and finally 1.0727 (monthly low Apr.24). On the upside, a break above 1.0944 (55-day SMA) would target 1.1019 (weekly/monthly high May 1) en route to 1.1020 (200-day SMA).