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EUR/USD fighting hard to regain 1h 20-SMA, US CPI eyed

FXStreet (Mumbai) - EUR/USD continues its struggle around 1.0665 levels and fails every attempt to extend beyond the hourly 20-SMA placed at 1.0674.

EUR/USD eyes US CPI

The EUR/USD pair trades -0.18% lower at 1.0667, stalling its recovery from 1.0643 lows near 1.0675 region. The main currency pair keeps its bearish bias intact and consolidates in a 15-pips narrow range over the last couple of hours, as markets refrain from creating fresh positions before the release of the US inflation report.

Markets are expecting the consumer prices in the US to rebound to 0.2% in Oct versus a -0.2% decline previously. While the core figures are expected to remain steady at 0.2%. An upbeat CPI reading will seal in a Dec Fed rate hike deal and thereby add to further selling pressure in EUR/USD. Apart from US CPI report, the US calendar also offers the industrial production data which may also boost the USD bulls.

The EUR/USD pair remained little affected by the better than expected ZEW readings while upbeat sentiment on the European stocks also failed to deter the negative bias seen around the euro.

The ZEW Economic Sentiment Index rose sharply higher to 10.4 points in Nov, beating expectations of a 6.6 rise. While the Current Situation Index came in at 54.4 in November, declining slightly from October's 55.2.

EUR/USD Technical Levels

The pair trades below 1.07 handle with the immediate support seen at 1.0656/50 (Daily S1/ Psychological levels). Selling pressure will intensify below the last, dragging the pair towards 1.0600 (round number). While to upside, the next hurdle in sight is located at 1.0691/1.0700 (Today’s High/ round number) from there to 1.0729/33 (5/ 10-DMA).

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