• The EUR /USD pair declined on Wednesday as dollar recovered after data showed rising consumer prices and as investors awaited a speech by Federal Reserve Chair Janet Yellen.
   
• U.S. consumer prices increased in December as households paid more for gasoline and rental accommodations, leading to the largest year-on-year rise in 2-1/2 years.
   
• Consumer Price Index rose 0.3 percent last month after gaining 0.2 percent in November. In the 12 months through October, the CPI increased 2.1 percent, the biggest year-on-year gain since June 2014. The CPI rose 1.7 percent in the year to November.
   
• Ahead in the US session traders are awaiting for a speech by the Fed's Yellen on interest rate policy to give fresh direction to the dollar.
   
• The ongoing weakness is set to continue for this pair as the resistance level at 1.0766 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
   
• To the upside, the immediate resistance can be seen at 1.0711, a break above this level would expose the pair to next resistance level at 1.0766.
   
• To the downside, immediate support can be seen at 1.0660, a break below at this level will open the door towards next level at 1.0621.
  
  Resistance Levels
  
  R1:  1.0711 (23.6% Retracement level)   
  
  R2: 1.0766 (Dec 7th high)               
  
  R3: 1.0800 (Psychological levels)
  
  Support Levels
  
  S1: 1.0660 (38.2% Retracement level)                    
  
  S2: 1.0621 (50% Retracement level)
  
  S3: 1.0583 (23.6% Retracement level)