- EUR/USD is now reversing the initial losses and moving back towards 1.0750.
- US CPI matched market expectations in February.
- Attention remains focused on possible moves by the Fed in March.
The pair EUR/USD now reverses the initial pessimism and rises back to the 1.0750 areaafter the publication of the US consumer inflation figures. The pair has retested the highest levels in a month reached the previous day at 1.0749 and has subsequently retreated back towards the 1.0720/30 region.
EUR/USD: Gains look capped near 1.0750
The EUR/USD pair has recovered its initial slide after US inflation figures, as measured by CPI, showed that consumer prices slowed to 6.0% yoy in February from 6.4% prior and core CPI eased to 5.5% from 5.6% priorboth figures coinciding with the initial consensus.
As an initial reaction, andhe dollar gives back some of the earlier gains and is now struggling to regain some upward traction in response to the growing speculation that the Fed could pause its hike cycle as early as the March meetingalways after the growing concerns about the US banking sector.
What can we expect around the EUR?
EUR/USD is now facing some downward pressure and maintains the bullish target in the 1.0750 zone amid inconclusive dollar price action following the US CPI.
Meanwhile, the price action of the European currency should closely follow the dynamics of the dollar, as well as the possible next moves of the ECB after the March meeting, in which the central bank has already anticipated another 50 point rate hike. basic.
EUR/USD levels
At time of writing, the pair is down 0.07% on the day, trading at 1.0718. Next support lies at 1.0524 (March 8 low), followed by 1.0481 (Jan 6 low) and 1.0324 (200-day SMA). To the upside, a break of 1.0749 (March 13 high) would target 1.0804 (Feb 14 high) en route to 1.1032 (Feb 2 high).
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.