He EUR/USD has advanced more than 45 pips so far on Tuesday, rising from the Asian session low at 1.0720 to a new three-day high at 1.0767 at European noon. The pair awaits the key US CPI data with a bullish tone.
The markets began the day cautiously, although risk appetite has increased in recent hours, which has been reflected in a drop in the dollar against its rivals. He DXY Dollar Index has fallen to 102.91new two-day low, and is now trading around 103.00.
The Eurozone has released its Gross Domestic Product (GDP), meeting market forecasts with growth of 1.9% in the preliminary annualized reading for the fourth quarter of 2022. This is the seventh consecutive quarter of economic expansion in the eurozone, albeit slow. October to December 2022 shows its slowest growth rate since the first quarter of 2021.
Traders await the most important data of the day and week, the US inflation figures for January, which is expected to moderate to 6.2% in its main reading from 6.5% currently. Core CPI is also expected to decline from 5.7% to 5.5%. Any deviation from these forecasts can cause strong movements in the dollar.
EUR/USD Levels
With EUR/USD trading above 1.0753 at time of writing, gaining 0.28% daily, the first resistance appears at the 1.0770 zone before 1.0790, maximum of February 9. A clear break from 1.0800 would trigger a sharp increase towards 1.0940maximum of February 3.
To the downside, a break of the daily low 1.0720 would aim at 1.0700 first and to the support 1.0655 after. The latter is the 5-week low registered on February 13 and should act as a significant level of containment.
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.
