EUR/USD moves to 1.2390, session tops

• The pair reverts the initial drop to lows near 1.2340.
• USD gives away earlier gains and returns to the 89.60/55 band.
• EMU CPI came in softer than expected in March.

The now offered bias around the greenback is motivating EUR/USD to rebound from the area of daily highs and record fresh tops in the proximity of the 1.2390 level.

EUR/USD finds support near 1.2340

After bottoming out in the 1.2340 area in early trade, the pair has staged a moderate rebound and is now eyeing once again the critical barrier at 1.2400 the figure and Monday’s tops near 1.2415, all against some pause in the risk-on sentiment.

On the opposite side, the greenback is deflating from daily peaks near 89.80 when gauged by the US Dollar Index (DXY) and recedes to the 89.55/50 band ahead of the publication of the Fed’s Beige Book and speeches by NY Fed W.Dudley (permanent voter, centrist) and FOMC’s R.Quarles.

Earlier in the session, EMU’s final CPI figures for the month of March showed consumer prices rose 1.3% on a yearly basis, coming in below the preliminary print at 1.4%.

EUR/USD levels to watch

At the moment, the pair is gaining 0.13% at 1.2386 and a break above 1.2414 (high Apr.17) would target 1.2478 (high Mar.27) en route to 1.2538 (high Jan.25). On the flip side, immediate contention emerges at 1.2300 (low Apr.12) seconded by 1.2214 (low Apr.6) and finally 1.2153 (low Mar.1).