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EUR/USD eases to 1.1020 pre-European open, CPI in focus

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 25, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The recent bullish move seen behind the EUR/USD pair an out of legs just few pips below 5-DMA, now placed at 1.1043, and the rate reverted to familiar range near 1.1025 region ahead of the Euro zone final CPI data.

    EUR/USD: A test of Wednesday’s high still likely?

    Currently, EUR/USD trades 0.06% higher at 1.1020, retreating from session tops reached at 1.1038 last hours. The bid tone around the main currency pair took a hit following the release of a set of mixed data from Germany, which hit the EUR against its American rival.
    The German final Harmonised Index of Consumer Prices (HICP) matched the flash reading of -1.0%, while the Gfk consumer climate gauge improved to 9.5 versus 9.4 previous and 9.2 expectations.

    A sudden rally witnessed in the EUR/USD pair during the last hour can be mainly attributed to the strengthening EUR/GBP cross on sterling weakness. EUR/GBP rose to fresh more-than one-year highs at 0.7929. While the greenback trades largely muted against its major competitors, doing little to help the major.

    Attention now remains on the Euro zone final CPI data ahead of the US jobless claims and durable goods data. Besides, speeches from Fed’s Lockhart and Williams will also remain in focus.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance at 1.1043/47 (5-DMA/ Feb 24 High). A break beyond the last, doors will open for a test of 1.1100 (round number). On the flip side, the immediate support is placed at 1.1005/00 (daily low/ psychological levels) below which at 1.0985 (50-DMA) could be tested.
    For more information, read our latest forex news.

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