EUR/USD challenges 1.0800 ahead of CPI

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The single currency is now trading on a softer note vs. its American peer, sending EUR/USD to test the vicinity of the key support at 1.0800 the figure.

    EUR/USD eyes on EMU’s inflation

    After testing the boundaries of 1.0950 on Monday, the pair staged a deep pullback to sub-1.0800 levels during yesterday’s NA session following an abrupt recovery of the US dollar. Market sentiment remains mixed early in the European morning, where investors keep watching closely the developments from the Chinese equities.

    Data wise in Euroland, preliminary inflation figures are due later. Prior surveys see consumer prices to have gained 0.4% on a year to December, while Core prices are seen advancing at an annual pace of 0.9%.

    EUR/USD levels to consider

    At the moment the pair is down 0.21% at 1.0806 and a break below 1.0764 (23.6% Fibo of 1.1496-1.0538) would expose 1.0538 (low Dec.3) and finally 1.0456 (2015 low Mar.16). On the other hand, the next resistance lines up at 1.1046 (200-day sma) followed by 1.1129 (61.8% Fibo of 1.1496-1.0538) and then 1.1164 (downtrend from 1.1713).
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