EUR/USD up and down it goes, eyes 1.0970

FXStreet (Edinburgh) - After a brief knee-jerk to the area of 1.0940 in early trade, EUR/USD is now returning to the upper bound of the range near 1.0960/70.

EUR/USD bounces off 1.0940

The pair has come lower to test the area of 1.0940/35 following comments by ECB’s B.Coeure, who reiterated the flexible condition of the current QE programme although he acknowledged that low levels of inflation overseas remain a risk.

Choppy trade prevails so far ahead of US Retail Sales (0.3% exp.) and the Reuters/Michigan index, although gains appear limited around 1.0970 for the time being.

Back to Euroland, German CPI has matched the preliminary prints for the month of November, with consumer prices advancing at an annual pace of 0.4%.

EUR/USD levels to consider

At the moment the pair is up 0.13% at 1.0960 with the next hurdle at 1.0973 (55-day sma) followed by 1.1063 (high Dec.9) and then 1.1124 (61.8% Fibo of 1.1496-1.0524). On the other hand, a break below 1.0895 (38.2% Fibo of 1.1496-1.0524) would aim for 1.0524 (low Dec.3) and finally 1.0519 (low Apr.13).