EUR/USD comes down to 1.2400 post-German CPI

• German flash CPI missed estimates.
• Gains in spot faltered around 1.2440
• FOMC meeting now on sight.

After clinching fresh tops in the 1.2440 region, EUR/USD is now giving away some gains and retreating to the 1.2400 neighbourhood.

EUR/USD offered on German data

Spot is correcting lower on Tuesday after German advanced inflation figures tracked by the CPI are expected to rise at an annualized 1.6% vs. 1.7% forecasted and to contract at a monthly 0.7% (vs. a 0.5% contraction estimated.

Furthermore, the broader HICP has also disappointed expectations, showing that consumer prices are seen rising 1.4% over the last twelve months and contracting 1.0% on a monthly basis.

The pair gained attention once again following a deterioration of the greenback, which has quickly reverted the positive start of the week when tracked by the US Dollar Index (DXY), giving additional legs to the risk-associated space and motivating spot to gain over a cent since daily lows in the boundaries of 1.2330.

On the US data front, the S&P/Case-Shiller index is next on tap seconded by the consumer confidence tracked by the Conference Board for the month of December.

EUR/USD levels to watch

At the moment, the pair is gaining 0.29% at 1.2418 and a breakout of 1.2441 (high Jan.30) would target 1.2537 (2018 high Jan.25) en route to 1.2571 (high Dec.16 2014). On the flip side, the next support aligns at 1.2336 (low Jan.30) followed by 1.2317 (10-day sma) and finally 1.2187 (21-day sma). On the flip side,