EUR/USD fades the spike to 1.2380 post-US data

• The pair’s upside faltered ahead of 1.2380.
• Nowotny’s comments boosted the demand for EUR earlier.
• US Producer Prices surprised to the upside in March.

After recording fresh 2-week tops in the boundaries of 1.2380, EUR/USD is now giving away some gains and is returning to the mid-1.2300s.

EUR/USD upside capped near 1.2380

The softer tone around the greenback remains unchanged so far today, although the buck seems to have managed to stage a rebound from session lows in the 89.60 when gauged by the US Dollar Index (DXY).

The greenback remains vulnerable despite US Producer Prices surprised to the upside in March, rising at a monthly 0.3% and 3.0% over the last twelve months. Core prices followed suit, up 0.3% inter-month and 2.7% on a yearly basis.

EUR remains bolstered by hawkish comments by ECB’s E.Nowotny, who said the European Central Bank will stop buying assets at some point this year.

EUR/USD levels to watch

At the moment, the pair is gaining 0.25% at 1.2350 and a break above 1.2478 (high Mar.27) would target 1.2537 (high Jan.25) en route to 1.2557 (2018 high Feb.16). On the downside, immediate contention emerges at 1.2294 (10-day sma) seconded by 1.2214 (low Apr.6) and finally 1.2206 (low Feb.9).