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EUR/USD surpasses 1.0800 again on the eve of a choppy Wednesday

  • EUR/USD regained ground after swinging early on Tuesday.
  • US PPI inflation rose in the short term, but bets on a rate cut remain stable.
  • EU GDP growth and US CPI inflation figures will be published on Wednesday.

The EUR/USD pair regained ground on Tuesday, breaking above the 1.0800 level and settling near 1.0820 at the end of the American session. On Wednesday, the pair's economic agenda will be full of data, with the publication of the European Gross Domestic Product (GDP) and the US Consumer Price Index (CPI).

The US Producer Price Index (PPI) figures were largely in line with expectations on Tuesday, with an annualized core PPI of 2.4%, but this figure showed a short-term rebound in prices after that the figure for the previous period would be revised downwards to 2.1% from the initial figure of 2.4%.

The results of the May pan-European economic sentiment survey (ZEW) helped support the Euro following a cautious rise in consumer sentiment. The ZEW survey of economic sentiment improved to 47.0 points, above the forecast of 46.1 and up from 43.9 the previous month. The survey reached its highest figure since February 2022.

European GDP growth of 0.3% in the first quarter is expected on Wednesday. Likewise, annualized GDP growth is expected to remain at 0.4% year-on-year.

On Wednesday, US CPI inflation is expected to remain stable at 0.4% month-on-month and April year-on-year CPI is expected to decline to 3.4% from 3.5% previously. Core CPI inflation will attract investors' attention, and is expected to decline to 3.6% annually from 3.8% previously. US retail sales are also expected to cool slightly, with April monthly retail sales growing 0.4% compared to 0.7% previously.

EUR/USD Technical Outlook

Tuesday's EUR/USD jump dragged the pair further into near-term bullish territory, recovering above 1.0800 and reaching the pair's highest bids since early April. The pair has shakily recovered from the last major swing low in the 1.0600 area, rising more than 2% since mid-April.

Tuesday's rallies have propelled the pair above the 200-day EMA at 1.0797, but a firm pattern of lower highs is weighing on EUR/USD, with the latest swing high failing to reach the level. of 1.0900.

EUR/USD hourly chart

EUR/USD daily chart

EUR/USD

Overview
Latest price today 1.0821
Today I change daily 0.0031
Today's daily change 0.29
Today daily opening 1,079
Trends
SMA20 daily 1.0714
50 daily SMA 1.0787
SMA100 daily 1.0828
SMA200 Journal 1.0791
Levels
Previous daily high 1.0807
Previous daily low 1.0766
Previous weekly high 1.0791
Previous weekly low 1.0724
Previous Monthly High 1.0885
Previous monthly low 1.0601
Daily Fibonacci 38.2 1.0791
Fibonacci 61.8% daily 1.0782
Daily Pivot Point S1 1.0768
Daily Pivot Point S2 1.0747
Daily Pivot Point S3 1.0727
Daily Pivot Point R1 1.0809
Daily Pivot Point R2 1.0828
Daily Pivot Point R3 1,085

Source: Fx Street

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