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EUR/USD tests 1.2590 post-data

FXStreet (Edinburgh) - The shared currency attempted a test of 1.2590 in the wake of the release of the EMU’s CPI on Friday, with EUR/USD now hovering over 1.2580/90.

EUR/USD rebounded from 1.2540

After bottoming out in the 1.2540 region, the pair managed to pick up pace again and regain the 1.2560 area first and the 1.2590 neighbourhood after the inflation figures in the euro area. Flash consumer prices in the region advanced at an annual pace of 0.4% during October, matching estimates, while the Core reading eased to 0.7% over the last twelve months. Strategists at UOB Group noted “Despite the sharp rebound from the overnight low of 1.2545, the undertone is still weak but any further down-move will likely struggle to move below 1.2540/45. A break above 1.2640 would indicate that a recovery towards 1.2680 has started”.

EUR/USD key levels

The pair is now losing 0.28% at 1.2578 and a breach of 1.2540 (low Oct.31) would target 1.2504 (low Oct.6) en route to 1.2501 (2014 low Oct.3). On the upside, the initial hurdle aligns at 1.2617 (high Oct.31) ahead of 1.2639 (high Oct.30) and then 1.2688 (21-d MA).

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