The EUR/USD pair is retreating for a second day on Monday, sliding to the 1.0850 area after hovering around 1.0900 for a period of consolidation. The absence of any significant high-tier data releases has also contributed to the pair's struggles, resulting in an increase in demand for the U.S. dollar.
At the time of writing, the EUR/USD pair is trading at 1.0860, down 0.34% on the day, while the DXY Index is currently at the 102.60 area, 0.5% above its opening price.
No relevant economic data will be released on Monday as most European markets remain closed due to the Easter Monday holiday, and investors remain cautious ahead of Wednesday's U.S. inflation data. The Consumer Price Index (CPI) inflation rate is expected to decrease to 5.2% from its previous reading of 6%, while the core rate is seen accelerating slightly to 5.6%.
In the meantime, U.S. bond yields treading water after Friday's jump, with the 10-year yield currently trading at 3.39%.
On Friday, the nonfarm payrolls report showed the U.S. economy added 236,000 new positions in March, in line with expectations of 240,000, while the unemployment rate edged lower to 3.5%. Ahead of CPI figures, investors are betting on higher odds of a 25 bps hike by the Fed in May. Hot inflation readings on Wednesday would strengthen the case for the hike, favoring the U.S. dollar. 
From a technical standpoint, the EUR/USD holds a short-term bullish outlook according to indicators on the daily chart as the RSI and MACD are both in positive territory, although losing momentum. At the same time, the price hovers above its main moving averages, with the 20-day SMA offering immediate support at the 1.0810 zone.
On the upside, the following resistance levels are seen at the 1.0900 level and last week's highs at the 1.0970 area ahead of February's high of 1.1032. On the flip side, loss of the 1.0810-00 zone would expose the 100-day SMA at 1.0685.