FXOpen
The Euro (EUR) inched higher against the US Dollar (USD) on Friday, increasing the price of EUR/USD to more than 1.0600 ahead of the US Consumer Price Index (CPI) report which is considered a key gauge for inflation. The technical bias remains bullish because of a higher low in the recent downside wave.
Technical Analysis
As of this writing, the pair is being traded around 1.0616. A hurdle may be noted near 1.0622, the pink trendline resistance as well as 50% fib level ahead of 1.0629, the short-term horizontal resistance area and then 1.0677, the high of the last major upside rally on the hourly timeframe as demonstrated in the given below chart. A break and hourly closing above the 1.0677 resistance shall incite renewed buying interest, validating a move towards the 1.0700 resistance zone which is a psychological level.
On the downside, a support may be seen near 1.0600, the short-term horizontal support area as demonstrated in the given above hourly chart along with the 61.8% fib level. A break and hourly closing below the 1.0600 support shall incite renewed selling pressure, validating a move towards the 1.0588 which is the low of last major downside move on the hourly timeframe. The technical bias shall remain bullish as long as the 1.0588 support zone is intact.
How EUR/USD Reacted on Past CPI Releases?
The EUR/USD fell by more than 30 pips after the release of US Consumer Price Index data last month. The CPI registered 0.1% reading in February as compared to the forecast of 0.0%, the report released on 15th March 2017 revealed.
The pair, however, didn’t show any noticeable volatility after the release of January’s CPI report because the actual figure was in line with the projections of economists i.e. 0.3% vs 0.3% forecast.
Trade Idea
Considering the overall technical and fundamental outlook, buying the pair around current levels can be a good strategy in short to medium term.
Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.
* FXOpen International, Innovative Broker of 2022, according to the IAFT
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Latest from Forex Analysis
Latest articles
Market Analysis: US Dollar On the Rise Despite Weak PMI Data
EUR/USDThe euro fell against the US dollar on Friday as economic data showed a contraction in economic activity, which could prompt European Central Bank hawks to soften their policy stance. Preliminary data indicates a contraction in economic activity in
Economic calendar: NASDAQ 100 May Keep Falling, High Volatility in Oil Markets, Potential Appreciation of the US Dollar
The US, Japan and the UK may have kept interest rates on hold last week, but with the Federal Reserve indicating that rates will stay higher for longer, there is turmoil in the equity markets. The NASDAQ 100 fell 500
Financial Markets Waking Up after a Turbulent Week: Important News
The main event of last week was information from the Fed. Jerome Powell once again demonstrated his determination to maintain a tough political stance, which caused: → increase in bond yields. Yields on 10-year securities reached their highest since 2009; → the