EUR/USD trying to gather itself for a run at 1.20 with EU CPI figures in the barrel

• The Euro is trying to stage a correction, but the hole is deep and risk appetite remains thin.
• European CPI, US Jobless figures, and NFP Friday make for a hectic end to a quiet week.

The EUR/USD is bouncing off of yesterday's floor, testing into 1.1980 ahead of the European session.

The Euro has fallen over three and a half percent from April's highs in the US Dollar run-up spurred on by higher US Treasury yields, and the EUR broke through the 200-day SMA this week for the first time since April of last year.

EURUSD Analysis: A little perspective

Thursday is a hectic showing for the EUR/USD pair, kicking off a with a preliminary reading of the European CPI figures for April at 09:00 GMT, and the year-on-year figure is expected to remain steady at 1.3%, while the Core CPI y/y is forecast to tick upwards to 1.2% after printing a flat 1% in the previous month. Following that will be a speech from the European Central Bank's (ECB) Vice President Vitor Constancio at 12:00 GMT, followed by a 12:30 GMT speech from the ECB's Benoît Cœuré.

Also at 12:30 GMT the US side will be seeing Jobless Claims, with new claims expected to bump higher to 225 thousand from the previous reading of 209 thousand, with the Markit Composite PMI, also at 12:30, expected to climb to 55.2 compared to the previous period's figure of 54.8.

EUR/USD analysis: Fed may have not been hawkish, but the dollar is still the strongest

EUR/USD levels to watch

As noted by the LMAX Research desk, "the Euro is finally on the move after consolidating for the entire 2018 in a range between 1.2150 and 1.2550. This latest breakdown below the bottom end of the range sets the stage for deeper setbacks in the days ahead towards a measured move extension objective in the 1.1700 area, which also happens to coincide with the December 2017 low."

Meanwhile, FXStreet's Chief Analyst Valeria Bednarik warns that traders may be waiting for this Friday's Non-Farm Payrolls before jumping into a decisive move on the EUR/USD: "from a technical point of view, the prevailing bearish trend remains in place, despite the EUR/USD pair recovered above 1.2000 with the event, although struggles around it by the US close. In the 4 hours chart, technical indicators have corrected oversold readings,  but remain well into negative territory, as the price develops below a bearish 20 SMA, currently at around 1.2050. The risk of further declines is still high, and will probably become a reality with a break below the mentioned 1.1915, although the market may choose to wait for Friday's Nonfarm Payroll report before pushing the pair to fresh yearly lows."

Support levels: 1.1950 1.1915 1.1880

Resistance levels: 1.2030 1.2055 1.2090