As expected European inflation slowed down to 0.3%, while core reading resulted slightly up, 0.9% against 0.8% expected. Unemployment rate for the area, remained steady at 11.5%. The inflation number was indeed the reason of the EUR/USD spike higher, as despite being another sign of deflation, at least matched expectations. Furthermore, the last trading day of the month usually sees majors going against its dominant trend on profit taking.
Technically however, it has been a week to forget so far with the EUR/USD confined to a 70 pips range between 1.3150 and 1.3220. The 4 hours chart shows price latest spike being retraced, with price below a flat 20 SMA. Indicators grind higher but momentum stands barely above its midline, and RSI flat in bearish territory, showing no actual strength. Consolidating near its year low, the risk on the pair remains to the downside, with a break below 1.3150 exposing the 1.3100/20 price zone. Steady gains above 1.3220 on the other hand, may see a recovery up to 1.3250 price zone, yet the most likely scenario for today is an extension of the consolidative range ahead of next week Central Banks and US employment figures.
View Live Chart for EUR/USD
Technically however, it has been a week to forget so far with the EUR/USD confined to a 70 pips range between 1.3150 and 1.3220. The 4 hours chart shows price latest spike being retraced, with price below a flat 20 SMA. Indicators grind higher but momentum stands barely above its midline, and RSI flat in bearish territory, showing no actual strength. Consolidating near its year low, the risk on the pair remains to the downside, with a break below 1.3150 exposing the 1.3100/20 price zone. Steady gains above 1.3220 on the other hand, may see a recovery up to 1.3250 price zone, yet the most likely scenario for today is an extension of the consolidative range ahead of next week Central Banks and US employment figures.
View Live Chart for EUR/USD
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