EUR/USD offered at 38.2% fib, trades below 1.07

EUR/USD was offered in early Asia around 1.0707 (38.2% fib retracement of Trump sell-off) and now trades around 1.0690 levels.

Focus on Eurozone CPI

The data calendar today includes German labor market data, Eurozone preliminary CPI reading and Eurozone Q4 GDP.

EUR traders are likely to give more weight to Eurozone preliminary CPI release, which is expected to show the cost of living jumped to 1.5% in January from the December figure of 1.1%.

Core inflation is seen unchanged at 0.9%. Moreover, the ECB has made it clear that it is ready to look through transient factors like high energy prices.

EUR/USD Technical Levels

A break above 1.0707 (38.2% Fib) could yield a rally to 1.0740 (previous day’s high) and to 1.0775 (Jan 24 high). On the other hand, a breakdown of support at 1.0658 (Jan 26 low) would expose support at 1.0620 (previous day’s low) under which the losses could be extended to 1.0588 (50-DMA).