EUR/USD creeps higher to 1.2370 ahead of Draghi, US CPI

• The index extends the upside momentum to the 1.2370 region.
• USD keeps losing ground, testing the 89.50 zone, or new weekly lows.
• US CPI, FOMC minutes will be the salient events later today.

The demand for the single currency remains solid so far this week and is now pushing EUR/USD to the area of fresh 2-week lows in the 1.2370 region.

EUR/USD looks to US CPI, FOMC

The pair is advancing for the fourth consecutive session so far on Wednesday, up more than a cent since last Friday’s tops in the vicinity of the critical 1.2200 support.

The generalized selling bias hitting the greenback keeps fuelling the up move in spot, while yesterday’s hawkish comments from ECB’s board member E.Nowotny gave extra legs to the shared currency after suggesting the ECB could terminate the bond-buying programme later this year.

In the meantime, the pair keeps the broader sideline theme unchanged for the time being, facing the next interim resistance at mid-March’s tops near 1.2480.

Data wise in Euroland, the salient event will be the speech by President Draghi, while inflation figures for the month of March and the publication of the FOMC minutes will attract all the attention in the NA session.

EUR/USD levels to watch

At the moment, the pair is gaining 0.10% at 1.2367 and a break above 1.2478 (high Mar.27) would target 1.2538 (high Jan.25) en route to 1.2557 (2018 high Feb.16). On the downside, immediate contention emerges at 1.2321 (21-day sma) seconded by 1.2305 (10-day sma) and finally 1.2214 (low Apr.6).