- The dollar without major changes after the US wholesale inflation report for August.
- EUR/USD recovers ground after Tuesday’s sharp drop.
- Support at the low zone at 0.9950 and at the 20 hour moving average at 0.9980.
The EUR/USD is rising slightly on Wednesday and remained in positive territory after the US economic data, moving around the parity zone.
EUR/USD had previously risen to 1.0022, but then lost momentum and fell back to 0.9980. For hours it has been moving laterally around 1,0000.
The US wholesale inflation data did not have a big impact. The Labor Department reported that the Producer Price Index fell 0.1% in August, in line with expectations. The annual rate decreased from 9.8% in July to 8.7% in August. On Tuesday, retail inflation generated a rally in the dollar that took EUR/USD from levels near 1.0200 to 0.9955.
The equity markets regain ground modestly, which helps keep demand for the dollar limited. A deterioration in market sentiment and/or a rise in Treasury yields could once again strengthen the dollar.
EUR/USD with support at 0.9950/55
In the very short term, the first support now appears at the 20 hour moving average at 0.9980. A drop below would expose the daily low at 0.9950/55. On the upside, at 1.0030 is the first resistance and then a more important one at the 1.0055 area, which if broken would leave the Euro with support for a firmer recovery.
Technical levels
Source: Fx Street
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