The EUR/USD is grinding south ahead of the upcoming Eurozone CPI release. It appears that the positive U.S. Continuing Jobless Claims report from earlier has given the USD some life. Taking into account the coming news cycle to end the week, I expect price action to be quiet and limited.

March has produced a very tight monthly range for the EUR/USD. After trading beneath the February 28 low, price has retraced to the 50% level of the February monthly range. Currently, trade is in the proximity of several important technical levels on the daily chart.

EUR/USD Technicals

While we are witnessing the bears take control of today’s session, the big picture shows us a non-committal EUR/USD. With the March FED meeting just under a week away, it appears traders are limiting exposure to this market.

Today’s intrasession low is 1.2322, just a bit below support on the daily chart. Here are the three levels to watch for the remainder of the session:

• Support(1): 20 Day EMA, 1.2332
• Support(2): Daily SMA, 1.2330
• Support(3): Bollinger MP, 1.2328

Overview: I will be surprised if the EUR/USD makes any sort of move in the coming hours. However, I am usually surprised at least once a day and this market is threatening to break beneath the defined support levels. If so, we could be looking at a trend day down for Friday’s session.

Trading consolidating markets is tricky. Price action is inconsistent and support/resistance levels are often invalid. With a bit of luck, this market will open up on the coming Eurozone CPI report.