EUR/USD little changed around 1.1180 on softer EZ CPI

A rebound staged by the EUR/USD pair in early Europe lost legs once again just shy of 1.12 handle, and the rate now steadies near 1.1180 region, despite the release of softer-than expected Eurozone flash CPI report.

EUR/USD: Focus shifts to Fedspeak

Downbeat inflation figures from France and Eurozone had limited impact on the major, as markets had already priced-in weaker data, especially after the German CPI and retail sales disappointment. Meanwhile, a drop in the Eurozone unemployment rate outweighed softer CPI data, thus, offering some respite to the EUR bulls.

EZ flash CPI eases more than expected to 1.4% in May

The retreat in EUR/USD from near 1.12 handle seen last hour, can be mainly attributed to a rise in the US yields across the board amid rising rate hike expectations this month, in the wake of recent series of upbeat US fundamentals, including growth and inflation numbers.

Further, looming Greece default concerns keep any recovery attempts short-lived. With the Euroland data out of the way, the US pending home sales data and Fedspeaks will be closely eyed for fresh incentives on the prices.

EUR/USD Technical Levels

Slobodan Drvenica at Windsor Brokers Ltd noted: “Close above strong barrier at 1.1190/1.1207 zone (4-hr cloud top/Fibo 61.8% of 1.1268/1.1109 pullback/Wednesday's high) is needed to confirm reversal and open way for possible full retracement of 1.1268/1.1109 downleg. Initial support lies at 1.1160, followed by strong support at 1.1109/04 (Wednesday's low/Fibo 38.2% of 1.0839/1.1268 upleg).”