EUR/USD drops further to 1.0910 ahead of EMU CPI

Having peaked near 5-DMA at 1.0962, the EUR/USD pair came under massive selling pressure as focus now turns towards the Euro zone flash CPI estimate.

EUR/USD: 100-DMA in focus

Currently, EUR/USD trades -0.14% at 1.0917, gyrating near fresh session lows struck at 1.0911 last minutes. The main currency pair surrendered all of the German retail sales backed gains and fell sharply lower as markets give up the shared currency heading into the Eurozone CPI report. EMU February inflation data estimate is expected to post no growth, below the 0.3% seen in January.

However, the downside remains cushioned on the back of the persistent risk-off environment as the European stocks continue to fall. Germany’s DAX is down -1.70%, while the pan-European benchmark, the Euro Stoxx also slides -1.65%.

Attention now remains on the main risk for the EUR today, the EMU CPI data ahead of the US macro releases due later today.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.0961/62 (5-DMA/ daily high). A break beyond the last, doors will open for a test of 1.0987/1.0998 (50-DMA/ 1h-50-SMA). On the flip side, the immediate support is placed at 1.0897 (100-DMA) below which at 1.0867 (Jan 28 Low) could be tested.

Having peaked near 5-DMA at 1.0962, the EUR/USD pair came under massive selling pressure as focus now turns towards the Euro zone flash CPI estimate.

(Market News Provided by FXstreet)

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