EUR/USD rebounds and climbs toward 1.0700

EUR/USD rebounded after the beginning of the American session and erased most of the day’s losses. The pair bottomed at 1.0654, after the release of US CPI data and then turned to the upside, rising at a modest pace. 

Recently it reached levels on top of 1.0700 but so far it has been unable to hold on top. It was trading at 1.0690, less than 20 pips below yesterday’s closing price. 

Greenback weakened across the board during the last hours, erasing gains while the euro trimmed gains versus the pound. Volatility so far on Wednesday remains lows. It could rise with Janet Yellen speech from San Francisco, at 20:00 GMT. Before Yellen, the Fed will release the Beige Book about the state of the US economy, but usually, that report tends to have no impact on the US dollar. 

US CPI: Inflation pressures building, not fast enough to alarm the Fed - Wells Fargo

EUR/USD levels to watch 

To the downside support levels might lie at (Jan 18 low),  1.0625/30 (55-day SMA) followed by 1.0575  (Jan 16 low). On the flip side, resistance could be seen at 1.0700, 1.0720 (Jan 17 high) and 1.0745/50 (Nov 17 high).