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EUR/USD hits fresh lows and bounces after US CPI, housing data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 20, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - EUR/USD wavered around the 1.0900 level, hitting fresh daily lows and bouncing, following the release of US consumer price index and housing starts data.

    US CPI rose dropped 0.1% in December and rose 0.7% YoY, slightly below the 0.0% and +0.8% expected respectively. Excluding foods and energy, consumer prices grew 0.1% MoM and 2.1% YoY mainly in line with expectations.

    Separated data showed housing starts fell 2.5% from a month earlier to a seasonally adjusted annual rate of 1.149 million, below the 1.2 million of consensus.

    Despite lackluster readings, the dollar edged higher against the euro, and dragged EUR/USD to a low of 1.0891 as the knee-jerk reaction, but quickly bounced toward 1.0915. It was trading around 1.0900 before the data.

    EUR/USD technical levels

    In terms of technical levels, next supports are seen at 1.0819 (50-day SMA), 1.0804/00 (Jan 13 & 8 lows/psychological level), 1.0770 (Jan 7 low) and then 1.0710 (Jan 5 low). On the other hand, next resistances line up at 1.0984 (Jan 15 high), 1.1002 (100-day SMA), 1.1047 (200-day SMA) and 1.1100 (psychological level).
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