EUR/USD halts advance at 1.0575, remains sideways ahead of US inflation data.

• The dollar falls in the market before US data.
• Treasury yields fall and Wall Street futures rise.
• EUR/USD remains in the familiar range of the last few days around 1.0550.

EUR/USD recently rose to 1.0575 making a daily high and then returned to the 1.0550 area. The pair continues to move sideways, ahead of important US data and improving markets.

ECB aims to raise rates, focus on US inflation

Several members of the Governing Board of the European Central Bank They spoke in public at this time, and in generating they presented perspectives consistent with the possibility of a rate hike in the third quarter. This helps to affirm expectations about the ECB, but does not necessarily boost the euro for the time being.

In US focus on Wednesday is on inflation data to be released at 12:30 GMT. The market consensus for the consumer price index is for a rise of 0.2%, and for the annual rate to go from 8.5% to 8.1%. Later there will be a 10-year debt placement and fiscal data for April will be released, which is expected to show a significant surplus.

short-term outlook

For several sessions the EUR/USD has been marking ascending minimums and descending maximums, confirming the neutral short-term outlook and the general downward trend.

EUR/USD remains in a familiar range with immediate support at 1.0545 and then daily low at 1.0520/25, 1.0500 below, before critical 1.0480 zone. The floor of the current range can be located in this last area, which if it gives way could lead to an acceleration to the downside.

Upside on Wednesday was capped at 1.0575. The strong barrier appears at 1.0600 and then 1.0600. If it asserts itself above 1.0600, the euro would gain support to extend the advance and improve the short-term outlook.

Technical levels