EUR/USD on its way to challenge 1.0900?

By FXStreet FXStreet (Edinburgh) – The European currency keeps surrendering initial gains and is now pushing EUR/USD to test the 1.0900 key support.

EUR/USD unchanged ahead of US CPI

The pair has fully faded the spike to 3-day tops near 1.0980 and is now hovering over the 1.09 neighbourhood, as risk aversion now seems to be taking a breather ahead of the key US inflation figures due later in the NA session.

Market consensus expects consumer prices to have risen 0.9% on a year to December, while core prices are seen at 2.1% YoY. Further data includes Housing Starts and Building Permits.

EUR/USD levels to watch

The pair is losing 0.03% at 1.0907 with the immediate support at 1.0860 (61.8% Fibo of 1.0538-1.1059) followed by 1.0709 (low Jan.5) and then 1.0538 (low Dec.3). On the flip side, a break above 1.0987 (high Jan.15) would target 1.0997 (100-day sma) en route to 1.1059 (high Dec.15).
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Source:: FX Street