The common currency has faded the initial spike to daily highs near 1.1030 vs. the greenback, with EUR/USD now challenging the key support at 1.1000 the figure.
EUR/USD attention to US calendar
The pair is now reacting to a pick up in the demand for the greenback, prompting the pair to recede from the area of session tops in the 1.1020/30 band to the current vicinity of the 1.1000 handle.
Spot is now struggling to keep the trade at/above the critical barrier at the 1.10 handle ahead of key US inflation figures due later in the NA session. Prior surveys expect headline consumer prices to have risen at an annualized 1.5% during September, while Core prices would have gained 2.3% over the last twelve months.
Further US data will see the NAHB index followed by TIC Flows during August and the weekly report on crude stockpiles by the API.
EUR/USD levels to watch
The pair is now gaining 0.04% at 1.1002 facing the next resistance at 1.1053 (4-month resistance line) followed by 1.1138 (20-day sma) and finally 1.1175 (20-day sma). On the flip side, a breakdown of 1.0964 (low Oct.17) would target 1.0950 (low Jul.27) en route to 1.0909 (low Jun.24).