- The US inflation data is coming, which is expected to generate great movement.
- The dollar could accelerate its fall or trigger a strong correction.
- EUR/USD is trading in a firm uptrend above 1.0700, the highest since June.
The EUR/USD is trading around 1.0760, in the zone of maximums since June, before the US inflation figures for December are known, which can bring a lot of movement in the market.
The Wednesday the pair reached the highest in months at 1.0776 and then had a modest correction to 1.0730/35. On Thursday the lows reached 1.0740, ratifying the pair’s short-term bullish tone, supported by the drop in the dollar and a firmer euro in the market. The latter partly thanks to comments from European Central Bank officials in favor of further interest rate hikes.
The weakness of the dollar in recent weeks before the rally in Treasury bonds, was behind the expectation of a Federal Reserve becoming less harsh. The inflation data that will be released at 13:30 GMT will be important for these expectations and therefore can generate a lot of noise in the market.
The market consensus is that the Consumer’s price index (CPI) has remained unchanged in December and that the annual rate goes from 7.1% to 6.5%. Core CPI is expected to rise 0.3% with the annual rate declining from 6.0% to 5.7%.
The EUR/USD reaches the key data with a firm upward trend, supported by the weakness of the dollar and in a context of optimism in the stock markets. The rises for the moment have found resistance in the 1.0770 area, which if it yields would put 1.0800 on the radar. In the opposite direction, first support appears at 1.0710/20 and below at 1.0660.
technical levels
EUR/USD
Panorama | |
---|---|
Last Price Today | 1.0762 |
Today’s Daily Change | 0.0008 |
Today’s Daily Change % | 0.07 |
Today’s Daily Open | 1.0754 |
Trends | |
---|---|
20 Daily SMA | 1.0635 |
SMA of 50 Daily | 1.0463 |
SMA of 100 Daily | 1.0173 |
SMA of 200 Daily | 1.0311 |
levels | |
---|---|
Previous Daily High | 1.0776 |
Minimum Previous Daily | 1.0726 |
Previous Weekly High | 1,071 |
Previous Weekly Minimum | 1.0483 |
Maximum Prior Monthly | 1.0736 |
Minimum Prior Monthly | 1.0393 |
Daily Fibonacci 38.2% | 1.0757 |
Daily Fibonacci 61.8% | 1.0745 |
Daily Pivot Point S1 | 1.0728 |
Daily Pivot Point S2 | 1.0701 |
Daily Pivot Point S3 | 1.0677 |
Daily Pivot Point R1 | 1.0778 |
Daily Pivot Point R2 | 1.0803 |
Daily Pivot Point R3 | 1.0829 |
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.