FXStreet (Edinburgh) – The shared currency is extending its bounce off session lows in the 1.1420 area vs. the dollar, with EUR/USD now reclaiming the 1.1445/50 band.

EUR/USD capped by 1.1500, focus on US data

After being rejected in the 1.1500 neighbourhood in early trade, spot has sparked a correction lower following the pick up in the risk appetite sentiment, which keeps sustaining the upbeat mood in European equity markets.

Amidst a continuation of the offered tone around the greenback, market participants has turned their focus to the US inflation figures gauged by the CPI due later in the NA session, seconded by Initial Claims and the Philly Fed manufacturing Survey. In addition, speeches by Fed’s Bullard, Dudley and Mester are also due.

EUR/USD relevant levels

As of writing the pair is retreating 0.27% at 1.1442 with the immediate support at at 1.1315 (Fibo 23.6% of 1.3993-1.04561) ahead of 1.1300 (psychological level) and finally 1.1212 (55-day sma). On the other hand, a break above 1.1500 (psychological handle) would target 1.1714 (high post-PBoC move Aug.24) en route to 1.1847 (Fibo 38.2% of 1.3993-1.0456).

The shared currency is extending its bounce off session lows in the 1.1420 area vs. the dollar, with EUR/USD now reclaiming the 1.1445/50 band…

(Market News Provided by FXstreet)

By FXOpen