EUR/USD breaking lower towards 20-DMA, US CPI in focus

The EUR/USD pair finally broke its Asian consolidation box to the downside post-European open, with the bears now attempting control as the USD recovery picks-up pace across the board.

EUR/USD stuck below 10-DMA at 1.1241

Currently, EUR/USD trades -0.10% lower at 1.1232, testing session lows struck at 1.1230 in the last hour. The main currency pair is seen on a gradual declining path as the US dollar is steadily extending its recovery mode against most of its major peers, on profit-taking ahead of the US inflation and consumer sentiment report due later on Friday.

The funding currency euro fails to benefit from the persisting risk-off environment, triggered by tumbling stocks and oil prices, dragging EUR/USD further into losses. While ECB Jazbec’s comments on the monetary policy failed to lift the sentient around the major.

The upcoming US datasets are likely to grab a lot of attention, as its release may trigger significant moves on either side, with a break below 1.1200 likely on upbeat US macro news.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.1300 (round number). A break beyond the last, doors will open for a test of 1.1343 (Aug 28 high). On the flip side, the immediate support is placed at 1.1200 (round figure) below which 1.1175 (200 & 100-DMA) could be tested.