EUR/USD approaches 1.1200, fresh session tops

The now softer tone around the greenback is helping EUR/USD to advance once again towards the key barrier at 1.1200 the figure.

EUR/USD attention to EMU’s CPI

Spot met fresh upside pressure as the initial USD strength seems to have run out of steam in the area of daily peaks near 97.40 when tracked by the US Dollar Index.

The area around 1.1200 is now back on the radar ahead of key advanced inflation figures in the euro area for the month of April. Expectations for an upside surprise have diminished following yesterday’s lower-than-expected CPI in Germany, which seem to lend extra support to the ECB’s view that inflation pressures in the region still remain subdued.

In addition, month-end flows would surely play their role in today’s price action, while jitters over Greece appear mitigated for the time being.

It is worth mentioning that EUR remains underpinned by the speculative community, which increased its net long position to levels last seen in late October 2013 in the week to May 23, according to the latest CFTC report.

EUR/USD levels to watch

At the moment, the pair is gaining 0.06% at 1.1193 and a breakout of 1.1207 (high May 30) would target 1.1235 (high May 26) en route to 1.1250 (high May 25). On the flip side, the immediate support is located at 1.1108 (low May 30) followed by 1.1073 (76.4% Fibo of 1.1300-1.0339) and finally 1.1077 (20-day sma).