EUR/USD parked around 1.2300 post-CPI

• The pair remains positive around the 1.2300 handle.
• EMU advanced CPI matched estimates in March at 1.4% YoY.
• Next on tap will be US ADP report and ISM Non-manufacturing.

The bid tone around the shared currency remains unchanged on Wednesday, taking EUR/USD to the 1.2300 area after the earlier spike to the proximity of 1.2320.

EUR/USD bid on data

After bottoming out in the 1.2260 region in early trade, the pair managed to regain the 1.2300 handle and move to daily highs in the 1.2315/20 band, losing some traction soon afterwards.

EUR stays bid after preliminary inflation figures in Euroland matched expectations in March, rising at an annualized 1.4%. In addition, Core CPI rose 1.0% YoY, missing forecasts, while the unemployment rate ticked lower to 8.5% in February.

Looking ahead, the US ADP report is due next, seconded by Factory Orders, Durable Goods Orders and the ISM Non-manufacturing for the month of March.

Furthermore, St.Louis Fed J.Bullard (2019 voter, centrist) and Cleveland Fed L.Mester (voter, hawkish) are also due to speak.

EUR/USD levels to watch

At the moment, the pair is advancing 0.19% at 1.2294 and a break above 1.2330 (21-day sma) would target 1.2478 (high Mar.27) en route to 1.2537. On the other hand, immediate contention emerges at 1.2254 (low Apr.3) followed by 1.2241 (low Mar.21) and finally 1.2206 (low Feb.9).