EUR/USD bounces off lows, back to 1.1170

After a brief test of session lows in the mid-1.1100s, EUR/USD has now gathered some pips and is now back around 1.1170.

EUR/USD focus on German CPI

The demand for the common currency remains subdued during the first half of the week, as the upside trend in the greenback keeps its upbeat momentum intact since last Friday.

Ahead in the session EMU’s Consumer Confidence and Business Climate are due ahead of the more relevant advanced CPI figures in Germany for the month of August.

Across the Atlantic, US home prices gauged by the S&P/Case-Shiller index is expected to have risen 5.2% on a year to June, while CB’s Consumer Confidence is seen a tad lower at 97.0 during August.

In the meantime, gains in spot remain capped by the 2014-2016 resistance line today at 1.1204 ahead of the other resistance line off recent high at 1.1367 (August 18).

EUR/USD levels to watch

The pair is now losing 0.15% at 1.1171 and a breakdown of 1.1156 (low Aug.29) would target 1.1119 (200-day sma) en route to 1.1043 (low Aug.5). On the other hand, the next up barrier aligns at 1.1204 (2014-2016 resistance line) followed by 1.1367 (high Aug.18) and finally 1.1434 (high Jun.24).