EUR/USD unchanged around 1.0600 ahead of German CPI

The single currency is alternating gains with losses vs. its American peer on Tuesday, taking EUR/USD to a narrow range around the 1.0600 handle.

EUR/USD focus on data

The pair’s upside momentum seems to have eased a tad after a promising start of the week on Monday, fading the spike to levels just shy of the 1.0700 barrier on Monday while briefly testing lows near 1.0560 towards the end of the session.

USD has recovered some ground after yesterday’s drop, finding solid support in the 100.70/60 band when tracked by the US Dollar Index. Recall that DXY has posted fresh 13-year tops just above 102.00 the figure last week, and has been trading erratically since.

Furthermore, President M.Draghi failed to ignite some durable reaction in spot following his testimony before the European Parliament on Monday, as he emphasized the resilience of the euro area particularly after the Brexit vote, while he argued as well that the ECB could assess its current conditions at the December meeting.

Looking ahead, preliminary inflation figures in Germany for the month of November will take centre stage ahead of the US docket: advanced Q3 GDP, Consumer Confidence tracked by the Conference Board, the S&P Case-Shiller index, PCE during Q3 and speeches by NY Fed W.Dudley (permanent voter, neutral) and J.Powell (permanent voter, neutral).

EUR/USD levels to watch

The pair is now down 0.05% at 1.0609 facing the initial support at 1.0515 (2016 low Nov.24) followed by 1.0457 (2015 low Mar.16) and then 1.0332 (monthly low January 2003). On the other hand, a break above 1.0685 (high Nov.28) would target 1.0763 (high Nov.16) en route to 1.0826 (high Nov.14).