EUR/USD trims losses, returns to the 1.1370 area

• The pair reverts part of the daily decline is now hovering over 1.1370.
• The greenback erases earlier gains and retreats to the 96.75/70 band.
• German flash CPI came in above expectations for October.

After bottoming out near 1.1340 during early trade, EUR/USD has now regained some buying interest and is back to the upper end of the daily range near 1.1380.

EUR/USD bid after German data

The pair gained some traction after advanced inflation figures in Germany showed consumer prices are expected to rise at a monthly 0.2% and 2.5% on a year to October, beating initial forecasts.

The results in the German CPI somewhat helped investors to leave behind earlier preliminary poor prints from Italian and EMU GDP for the third quarter.

In addition, USD-sellers appears to have stepped in after the US Dollar Index (DXY) moved higher to the proximity of YTD peaks, driving the index to fresh lows around 95.70, where some decent contention emerged.

In the US docket, Consumer Confidence tracked by the Conference Board surprised to the upside this month, up to 137.9.

EUR/USD levels to watch

At the moment, the pair is down 0.04% at 1.1368 and a break below 1.1334 (low Oct.26) would target 1.1316 (200-week SMA) en route to 1.1299 (2018 low Aug.15). On the flip side, the immediate hurdle aligns at 1.1431 (10-day SMA) seconded by 1.1485 (21-day SMA) and finally 1.1550 (high Oct.22).