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EUR/USD edges lower, CPI data on tap

FXStreet (Córdoba) - The EUR/USD is facing some pressure early European session, sliding to fresh daily lows following the release of disappointing Germany retail sales.

German retail sales dropped 1.4%in July versus a rise of 0.1% expected, while YoY sales rose only 0.7% versus an increase of 1.5% expected. However, the reaction of the euro was tame as focus turns to Eurozone consumer price index.

Expectations of further easing measures from the ECB have grown since Draghi's speech in Jackson Hole and have been fueled by dovish comments from other members of the Governing Council. In this regard, inflation data will be closely watched as some suggested September action (or the absence of it) will rely on today’s figures.

The EUR/USD dipped to a fresh daily low of 1.3165 but managed to hold above yesterday's bottom. At time of writing, the pair is trading at 1.3170, 0.08% below its opening price and on track for a weekly loss as the shared currency has been unable to fill Monday's opening gap.

EUR/USD technical levels


As for technical levels, the EUR/USD could find next supports at 1.3152 (2014 low Aug 27), 1.3104 (Sep 6 2013 low) and 1.3100 (psychological level). On the flip side, resistances are seen at 1.3238 (Aug 22 closing price) and the 1.3295/1.3300 area (Aug 22 high/psychological level).

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