FXStreet (Edinburgh) - The intraday decline of the EUR seems to have found decent support around the 1.3540/45 band, with the EUR/USD now looking to consolidate the drop.
EUR/USD focus on German CPI
After the recent ECB easing measures, market participants have been largely bypassing the data releases in the euro area. However, German, Italian and Spanish final consumer prices for the month of May are due on Friday, and might have the potential to ignite some volatility in the pair. With the European session half way, the greenback remains stronger across the board although the USD upside lost some momentum. In the opinion of Shaun Osborne, Chief FX Strategist at TD Securities, “The EUR has been rather immune to short-term spreads movement against it in the past few months but, in the wake of last Thursday’s ECB easing, the widening in 2-year Eurozone-US spreads has been quite decisive… All else being equal, we think wider spreads call for a test of 1.35 near-term at least 1.30”.
EUR/USD levels to watch
As of writing the pair is down 0.35% at 1.3546 with the immediate support at 1.3506 (low Jun.6) followed by 1.3482 (low Feb.6) and then 1.3477 (2014 low Feb.3). On the upside, a breakout of 1.3602 (high Jun.10) would expose 1.3649 (21-d MA) and finally 1.3656 (200-d MA).