EUR/USD off highs, deflates to 1.0920

FXStreet (Edinburgh) – The shared currency has faded the initial spike to session highs near 1.0980, now returning to the 1.0920/15 band as the European session is under way.

EUR/USD focus on US CPI

Spot remains bolstered by the risk-off trade that continues to dominate the global sentiment after another weak session in the Asian markets. The euro, as a ‘funding currency’ is finding increasing bids with the current environment, although the upside momentum appears so far capped around 1.0980.

The pair’s daily upside will be put to the test later in the NA session, where US inflation figures will take centre stage, seconded by Housing Starts and Building Permits.

EUR/USD levels to watch

The pair is up 0.21% at 1.0934 and a break above 1.0987 (high Jan.15) would target 1.0997 (100-day sma) en route to 1.1059 (high Dec.15). On the flip side, the immediate support aligns at 1.0860 (61.8% Fibo of 1.0538-1.1059) followed by 1.0709 (low Jan.5) and then 1.0538 (low Dec.3).

The shared currency has faded the initial spike to session highs near 1.0980, now returning to the 1.0920/15 band as the European session is under way…

(Market News Provided by FXstreet)