EUR/USD slides to session lows, around mid-1.2000s ahead of EZ CPI

   •  Remains capped below 2017 yearly highs as USD demand revives. 
   •  Traders lighten positions ahead of today’s important macro data. 

The EUR/USD pair finally broke down of its Asian session consolidation phase and refreshed session lows in the last hour of trading.

The pair continued with its struggled to decisively break through the 1.2080-90 supply zone and hence, a modest pickup in the US Dollar demand attracted some fresh selling near 2017 yearly highs resistance. 

Meanwhile, possibilities of some repositioning trade, ahead of today's key macro releases from the Euro-zone and the US, could also be one of the factors contributing to the pair's retracement to mid-1.2000s.

The flash version of Euro-zone headline CPI, due in a short while from now, will grab all the attention during the European session and could assist the pair to break through the weekly trading range. 

The downside, however, seems more likely to remain limited amid growing market expectations over narrowing monetary policy divergence between the Federal Reserve and the European Central Bank (ECB).

Later during the early NA session, the release of keenly watched non-farm payrolls data and ISM non-manufacturing PMI would also be looked upon for some meaningful impetus on the last trading day of the week. 

Technical levels to watch

Any meaningful fall might continue to find fresh buying interest near the key 1.20 psychological mark, below which the corrective slide could get extended towards 1.1945-40 horizontal support.

On the upside, sustained move beyond 1.2080-90 strong resistance now seems to pave the way for an extension of the pair's upward trajectory towards its next hurdle near the 1.2165 region.