EUR/USD: Firm US Housing, Jobless Data Helping USD

EUR/USD is testing Wednesday's lows after strong US housing data and a continued fall in jobless claims. CPI was in-line with expectations. Central bank buying in the 1.2900 area yesterday helped hold the line and will keep dealers from aggressively selling this morning. Strong support lies in the 1.2865/75 area still on dips while 1.2850 barriers also remain in play. 1.2940 is resistance on rebounds.