The single currency failed to react on the latest inflation data and was treading water on Friday, with the EURUSD pair seen flattish around 1.1670 during the London session.
The preliminary eurozone inflation data showed that price pressures eased a bit in August as the CPI inflation from 2.1% to 2.0%, while the core gauge also slowed from 1.1% to 1.0%. Both numbers came below analysts’ estimates.
Later in the day, the Chicago PMI is expected to slow notably to 63.0 from 65.5 scored in July. This could be greenback negative.
The EURUSD pair is now testing the previous bullish trend line around 1.1670 and if it defends it, the euro could still remain with a bullish perspective. The next resistance is seen at the 100 day moving average at 1.1740, where previous highs are also converged.
On the other hand, should the mentioned support fall, further decline toward the 1.16 mark could occur. The next line of defense will be at previous lows at 1.1550, where strong bids could be gathered.