EUR/USD inches higher, near 1.1140

The European currency is trading on a firmer note at the beginning of the week, with EUR/USD approaching the 1.1140 area.

EUR/USD looks to German CPI

After bottoming out in the 1.1100 neighbourhood, the pair has managed to pick up some pace and clinch the 1.1140 region during the European session, or daily highs, almost exclusively driven by the performance in Bunds yields while the demand for the greenback seems to have eased somewhat.

EUR will remain in the limelight later in the session, as flash German CPI for the month of May is due and expected to have risen 0.1% on a yearly basis. Markets in the US will be closed due to the Memorial Day holiday.

EUR/USD levels to watch

The pair is now advancing 0.15% at 1.1132 and a break above 1.1176 (100-day sma) would aim for 1.1246 (high May 23) and then 1.1275 (20-day sma). On the other hand, the immediate support lines up at 1.1097 (200-day sma) followed by 1.1055 (low Mar.16) and finally 1.0820 (low Mar.10).