- The index trims losses and hovers over the 1.1600 handle.
- The greenback gives away some gains and returns to 95.10.
- US Producer Prices unexpectedly dropped during last month.
EUR/USD keeps the familiar range so far on Wednesday, navigating the boundaries of the 1.1600 handle in the wake of the release of August’s US Producer Prices.
EUR/USD finds support near 1.1570 so far
Spot bounced to the boundaries of the critical 1.1600 handle after US headline Producer Prices surprised markets to the downside in August, contracting for the first time after 18 months at a monthly 0.1% and expanding 2.8% on a yearly basis.
In addition, Core Producer Prices dropped 0.1% inter-month and gained 2.3% over the last twelve months, both prints coming in below expectations.
In the meantime, the lack of a clear direction and absence of relevant catalysts today keep motivating spot to extend the multi-day sideline theme, while cautiousness among traders is seen growing bigger in light of the upcoming ECB meeting (Thursday).
EUR/USD levels to watch
At the moment, the pair is losing 0.12% at 1.1592 and a break below 1.1508 (low May 29) would target 1.1449 (50% Fibo of the 2017-2018 up move) and finally 1.1299 (2018 low Aug.15). On the upside, the next hurdle aligns at 1.1659 (high Sep.6) seconded by 1.1734 (high Aug.28) and finally 1.1745 (high Jul.31).
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