- EUR / USD advances to new highs near 1.1850.
- The headline CPI for EMU rose to a decade-high 3.0%.
- CB consumer confidence is next on the US agenda.
The strong recovery in EUR / USD appears to have found decent resistance near the 1.1850 level on Tuesday.
EUR / USD capped by 1.1850 … for now
EUR / USD advances further above 1.1800 following Monday’s inconclusive price action. The move, however, hesitated before 1.1850 so far Tuesday.
The pair is trading at fresh multi-week highs on the dollar’s renewed stance, as investors continue to absorb Powell’s post-Jackson Hole statement and cautious message, and month-end flows also add to the pessimism that surrounds the dollar.
The results of the data in the euro area also lend support to the single currency after the unemployment rate in Germany fell to 5.5% in August and the flash inflation figures in the euro area sent the CPI rise to the 3.0% year-on-year in August, levels last seen in 2011.
In the US data space, the house price index was up 1.7% month-on-month and house prices followed by the S & P / Case-Shiller index were up 18.5% year-on-year, both figures for the month of June. Subsequently, the Chicago PMI, consumer confidence measured by CB and the API report will close the daily calendar.
Technical levels
So far, the spot is gaining 0.19% at 1.1819 and faces the next bullish barrier at 1.1845 (August 31 monthly high) followed by 1.1908 (July 30 monthly high) and finally 1.1954 (100-day SMA). On the downside, a break below 1.1663 (2021 low on Aug 20) would target 1.1612 (Oct 20, 2020 monthly low) on its way to 1.1602 (Nov 4, 2020 monthly low) .
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