EUR/USD approaches 1.1230, dollar deflates

The single currency is extending its consolidative theme on Wednesday, now taking EUR/USD to the 1.1225/30 band ahead of the opening bell in Euroland.

EUR/USD focus on risk trends

Spot keeps navigating within a narrow range, finding quite decent support around overnight lows in the 1.1210 area for the time being.

Nothing noteworthy data wise in the Old Continent, as France and Spain will publish their final inflation figures for the month of August while EMU’s Industrial Production is also due. Across the pond, Export/Import Prices will precede the weekly report on crude oil inventories by the EIA.

In the meantime, a softer tone in the greenback throughout the Asian session provided some support to the pair, which, in the broader picture, continues to be dominated by speculations on the potential moves by the Federal Reserve in the next months.

EUR/USD levels to watch

The pair is now advancing 0.07% at 1.1227 and a break above 1.1305 (resistance line off 2016 high) would target 1.1329 (high Sep.8) and then 1.1367 (high Aug.18). On the other hand, the immediate support aligns at 1.1202 (2014-2016 support line) ahead of 1.1144 (200-day sma) and finally 1.1043 (low Aug.5).