EUR/USD returns to sub-1.1700 levels, or session lows

• The pair eases from tops and returns to the area below the 1.1700 handle.
• The greenback gathers some traction and flirts with 94.70.
• German flash CPI, US PCE next on tap later in the day.

The renewed offered bias around the single currency is now dragging EUR/USD to fresh daily lows in the 1.1690 area.

EUR/USD looks to data

The pair is trading on the defensive after four consecutive daily gains, keeping business close to the 1.1700 handle although still unable to break above the 1.1745/50 band on a sustainable fashion.

The softer tone around the buck remains the exclusive driver of the pair’s recent up move, although renewed effervescence in the EM FX universe could undermine the upbeat mood in spot.

Later in the day, German preliminary inflation figures will grab all the attention seconded by sentiment/confidence gauges in Euroland. Across the pond, inflation tracked by the PCE will be the salient event followed by Personal Income/Spending and Initial Claims.

EUR/USD levels to watch

At the moment, the pair is losing 0.10% at 1.1695 facing the next support at 1.1652 (low Aug.29) seconded by 1.1617 (55-day SMA) and finally 1.1603 (10-day SMA). On the flip side, a break above 1.1734 (high Aug.28) would target 1.1745 (high Jul.31) en route to 1.1792 (high Jul.9).