EUR/USD offered near 1.1280, EMU CPI eyed

By FXStreet It seems EUR/USD have resumed its leg lower today after failing to overcome the mid-1.1300s during the first half of the week.

EUR/USD lower, dollar buoyant

The buying interest around USD has been gathering traction after recent positive surprises in the US calendar and following hawkish comments by FOMC members (Lockhart and Williams), somewhat putting back into consideration a potential rate hike by the Fed at the June meeting.

According to CME Group FedWatch, the probability of a rate hike next month has climbed to 15% from lest than 5% yesterday, while there is now 30% probability of a rate hike in July vs. nearly 20% seen on Tuesday.

Adding to USD sentiment, the GDPNow gauged by the Federal Reserve of Atlanta sees the real GDP expanding at an annualized 2.5% in the second quarter.

EUR/USD levels to watch

The pair is now retreatiing 0.26% at 1.1284 and a break below 1.1213 (low Apr.25) would target 1.1148 (100-day sma) en route to 1.1142 (low Mar.24). On the other hand, the initial hurdle aligns at 1.1366 (20-day sma) followed by 1.1448 (high May 11) and finally 1.1615 (2016 high May 3).
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Source:: FX Street