- The dollar is trading mixed ahead of US inflation data.
- EUR / USD cuts the bounce at the 20-day moving average.
The EUR / USD is falling on Tuesday after two days of rises, ending the rebound from lows in more than a year for now. The pair reached 1.1606, the highest since Thursday, and changed direction. It is trading in the 1.1570 zone, at the low of the day before US wholesale inflation data.
At 13:30 GMT, the evolution of the US producer price index for October will be published. Before the same, the dollar is recovering ground in the market, although limited routes still predominate.
That data will also serve as a preview of Wednesday’s retail inflation report. The better tone of the dollar is given before a slight fall in the equity markets and despite the fact that the yields of the Treasury bonds remain close to the recent lows.
Another piece of information that traders are closely monitoring has to do with the possible succession of Jerome Powell at the head of the Federal Reserve. President Biden was made known to President Biden from a Lael Brainard hearing yesterday. Brainard is considered more dovish than Powell.
Brake on average of 20 days
The EUR / USD rally stopped for the time being at the 20-day SMA that is passing through 1.1600 / 05. A confirmation above will expose the 1.1615 resistance and then 1.1670 will follow.
Looking ahead to the next few hours, a return above 1.1585 will improve the intraday outlook for the euro. To the downside, the next support looms above 1.1550.
A daily close below 1.1520 would anticipate further weakness ahead, while 1.1620 would point to a prolongation of the recovery.
Technical levels
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