EUR/USD looks vulnerable below 1.1170, German data eyed

Having faced rejection just shy of 1.12 barrier in early Asia, the EUR/USD pair drifted lower and now remains in a bearish consolidative mode, awaiting the German retail sales and Eurozone flash CPI releases for fresh impetus.

EUR/USD stuck around 5-DMA at 1.1177

The spot remains better offered so far this Wednesday, in response to a generalized demand for the greenback amid higher treasury yields and better US inflation data, while increased odds for a rate hike this month continues to keep the sentiment buoyed around the buck.

Meanwhile, the Euro continues to remain under pressure amid renewed Greece default concerns and speculations surrounding the ECB’s move towards removal of the ultra-lose monetary policy.

Reuters quoted sources familiar with the matter, citing that the ECB is likely to discuss removing easing bias at June meeting, but decision remains far from certain.

Moreover, downbeat German inflation figures released yesterday collaborates to the poor sentiment around the EUR. Attention now turns towards the German retail sales, Eurozone flash CPI estimate and US pending home sales data for fresh direction. Meanwhile, FOMC member Kaplan’s and Brainard’s speeches will also hog the limelight.

EUR/USD Technical Levels

Valeria Bednarik, Chief Analyst at FXStreet noted: “In the 4 hours chart, the price is now battling around its 20 SMA that lost its bearish strength, whilst technical indicator have bounced from near oversold territory, now struggling around their mid-lines. The pair needs now to advance beyond 1.1220, the immediate resistance to be able to advance further, with scope to extend its rally beyond current yearly high and up to 1.1300. Support levels: 1.1160 1.1120 1.1080Resistance levels: 1.1220 1.1260 1.1300.”