EUR/USD probing session lows near 1.1870, US CPI, BoE eyed

Sellers keep flowing into the single currency during the second half of the week, now dragging EUR/USD to the area of fresh lows around 1.1870.

EUR/USD weaker ahead of US CPI

The pair is prolonging the weekly correction lower today, down for the second session in a row and posting at the same time fresh multi-day lows in the proximity of 1.1870.

The greenback has recovered the smile after investors remain optimistic over the likeliness of some announcement regarding Trump’s tax reform plans, as per yesterday’s news from the White House.

Also supporting the buck, yields of the US1 10-year reference managed to regain the boundaries of 2.20% late on Wednesday, just to ease some ground ahead of the opening bell in Euroland today.

Data wise in the euro area today, final CPI prints for the month of August in France and Italy should be far from making a noticeable impact on the markets. However, the BoE interest rate decision and US CPI figures stay poised to drive the sentiment in the markets later in the day.

EUR/USD levels to watch

At the moment, the pair is losing 0.11% at 1.1870 and a break below 1.1823 (low Aug.31) would target 1.1816 (5-month support line) en route to 1.1723 (55-day sma). On the upside, the next resistance aligns at 1.1932 (10-day sma) followed by 1.2041 (high Sep.11) and finally 1.2092 (2017 high Sep.6).