EUR/USD challenges session lows near 1.2360

• The pair fades the earlier test of tops near 1.2380.
• Market focus remains on US-Syria geopolitical concerns.
• ECB minutes, ECB-speak should keep the attention on EUR later.

After advancing to the area of 1.2380 during early trade, EUR/USD has now given away some upside momentum and returned to the 1.2360/55 band, or daily lows.

EUR/USD focus on the ECB

The pair is trading on the defensive in the second half of the week, so far reverting four consecutive sessions with gains, including fresh 2-week tops in levels just below 1.2400 the figure seen on Wednesday.

On the USD-side, the greenback appears to have recovered the smile today amidst a persistent risk-off sentiment, moving to the 89.60 region after bottoming out in 2-week lows around 89.30 earlier in the week.

Looking ahead, the ECB will publish its minutes along with speeches by BuBa’s J.Weidmann, B.Coeure and V.Constancio.

Across the pond, the usual weekly report on the US labour market is due seconded by Export/Import Prices for the month of March and the speech by Minneapolis Fed N.Kashkari (non voter, dovish).

EUR/USD levels to watch

At the moment, the pair is losing 0.08% at 1.2357 and a breakdown of 1.2320 (21-day sma) would open the door to 1.2310 (10-day sma) and finally 1.2214 (low Apr.6). On the upside, the initial hurdle emerges at 1.2396 (high Apr.11) followed by 1.2478 (high Mar.27) and then 1.2538 (high Jan.25).