EUR/USD challenges highs at 1.0440 ahead of EZ CPI

EUR/USD extends its rebound from multi-year lows in the European session, with the bulls tightening grip and sending the rate higher towards the mid-point of 1.04 handle.

EUR/USD: Eurozone flash CPI, FOMC minutes in focus

Currently, the spot jumps +0.29% to 1.0438, testing daily highs previously posted at 1.0440. The recovery in the EUR/USD pair gained further traction post-European open, as the greenback halted its upmove and corrected lower across the board amid subdued trading activity seen around the US treasury yields.

Moreover, better-than expected final services PMI reports from the Eurozone also lent support to the renewed upside in the major. While poor sentiment on the European equities further boosted the funding currency status of the EUR.

With the PMI readings out of the way, immediate focus now remains on the Eurozone flash CPI estimate due out shortly. While the main risk event for the major today remains the FOMC minutes, which is likely to reflect the hawkish stance taken by the Fed at its policy review meeting last month.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0460 (10 & 20-DMA). A break beyond the last, doors will open for a test of 1.0485 (daily R1) and from there to 1.0500 (zero figure). On the flip side, the immediate support is placed at 1.0352 (Dec 20 low) below which 1.0339 (multi-year low) and 1.0300 (zero figure) could be tested.