EUR/USD eases from weekly tops, still well bid around mid-1.1400s ahead of German CPI

   “¢   Persistent USD selling bias helped build on the overnight goodish up-move.
   “¢   Thin liquidity conditions holding traders from placing any aggressive bets.
   “¢   Traders now eye prelim German CPI/second-tier US data for fresh impetus.

The EUR/USD pair trimmed a part of its early gains to fresh weekly tops but has managed to hold with modest daily gains, around the 1.1450 region.

The pair built on previous session’s strong up-move of around 100-pips and continued gaining positive traction for the second consecutive session amid the prevalent US Dollar selling bias.

The partial US government shutdown coupled with fears of a possible economic slowdown in the US kept exerting downward pressure on the greenback and pushed the pair to a fresh weekly high level of 1.1467.

The uptick, however, lacked strong conviction/follow-through as traders now seemed to keep positions rather light amid thin liquidity conditions ahead of the year-end holidays.  

Moving ahead, today’s release of the prelim German consumer inflation figures, followed by second-tier US economic data – Chicago PMI and pending home sales data, will now be looked upon for some fresh impetus.

Technical levels to watch