EUR / USD marks daily highs above 1.1900 after US inflation data.

  • The dollar fell after the February inflation report, which showed numbers mostly in line with expectations.
  • EUR / USD rose to test resistance at the 1.1910 / 15 zone, unable to break.

The EUR / USD climbed to 1.1911 reaching a new high for the day after the evolution of the February consumer price index in the US became known., which generated a drop in the dollar in the market. After this the pair fell back towards the 1.1900 zone where it is trading, they showed a slight rise for the day.

The consumer price index reached 1.7% in February compared to twelve months ago, the highest reading since January 2020. Although it was within expectations, the dollar weakened. The underlying index rose below market consensus.

The data brought noise in the market as inflation figures have not done for a long time. The focus is on the bond market. The drop in yields after the inflation reading was what triggered the rise in the EUR / USD. The 10-year reference rate went from being close to 1.565% to 1.54%.

The placing of debt Today in the US will attract the eyes of traders. In addition, the approval of the president’s stimulus package is expected Biden for 1.9 trillion dollars. In the Eurozone, Thursday will be the meeting of the European Central Bank.

Technically, EUR / USD rally failed to break immediate resistance around 1.1910 / 15. Going above the next one can be seen at 1.1930 and then a stronger barrier at 1.1945.

To the downside, the next support appears at 1.1880. A consolidation below 1.1870 would point to a relevant support at 1.1850 which, if given, would increase the downward pressure, exposing the recent low at 1.1835.

Technical levels

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