EUR/USD - Falling top pattern intact, eyes German data

The EUR/USD pair’s retreat from 1.0654 (Dec 30 high) followed by a drop to 1.0453 yesterday has kept the falling top formation on the daily chart intact. 

Focus on German data

The data due in Germany today is expected to show the seasonally adjusted unemployment rate held steady at 6% in December. The preliminary CPI reading is seen rising to 1.5% y/y vs. November figure of 0.8%. 

The common currency may come under pressure if the German CPI misses estimates, while the ISM data in the US shows strength in the manufacturing activity. 

EUR/USD Technical Levels

The spot was last seen trading around 1.0475 levels. A break above 1.05 (zero figure) would expose 1.0527 (previous day’s high), above which the spot could tests supply around 1.0654 (Dec 30 high). On the other hand, a breakdown of support at 1.0452 (session low) would open the door to 1.04 (zero figure) and then to 1.0352 (Dec 20 low).