“¢ The headline/core CPI is estimated to have risen by 1.7% and 1.2% y/y rate respectively.
“¢ Better than expected CPI figures did little to provide any respite to the shared currency.
“¢ Traders seemed reluctant to place any aggressive bets ahead of the US monthly jobs report.
The EUR/USD pair held on to its mildly weaker tone through the early European session and moved little post-Euro-zone consumer inflation figures.
According to the preliminary report, the Euro-zone headline CPI is estimated to rise by 1.7% y/y rate in April as compared to 1.4% recorded in the previous month and core CPI is also seen edging higher to 1.2% y/y rate during the reported month from 0.8% previous.
The readings were better than consensus estimates, albeit did little to provide any immediate respite to the shared currency. The pair remained on the defensive for the third consecutive session and seems all set to extend this week’s post-FOMC retracement slide from near two-week tops.
Investors, however, seemed reluctant to place any aggressive bets ahead of today’s important release of the closely watched US monthly jobs report (NFP), which might influence the near-term US Dollar price dynamics and eventually provide some fresh directional impetus to the major.
Technical levels to watch
According to Yohay Elam, FXStreet’s own Analyst: “Initial support awaits at 1.1140 which was a temporary support line in mid-April. The 2019 trough of 1.1110 is a critical support line. The next line, 1.1025, dates back to June 2017, nearly two years ago.”
“Looking up, 1.1220 capped a recovery attempt recently. The high of 1.1265 seen on Wednesday is a significant resistance line. It is followed by 1.1325 that was a stubborn cap in mid-April,” he added further.
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