EURUSD remains in directionless mode on Tuesday, but deeper pullback could be anticipated
|EURUSD
The Euro stays in a choppy mode for the second day, despite brief probe above 1.2300 barrier overnight.
The pair returned quickly from the session high at 1.2323, staying at the back foot during European trading.
Strong indecision is signaled by long-legged Doji left on Tuesday, with today's action remaining in directionless mode.
Negative signals are developing on daily chart and weigh on the pair, as daily RSI and slow stochastic are reversing in the overbought territory and momentum is turning south, suggesting corrective action.
Close below lows of Mon/Tue at 1.2187/95 would generate initial bearish signal for extension towards pivotal support at 1.2167 (Fibo 38.2% of 1.1915/1.2323 upleg).
Rising 10SMA marks strong support at 1.2093, where extended dips should find ground, before larger bulls resume.
EU inflation data, released today, showed CPI in line with expectations in December (1.4%) which could satisfy hawks.
On the other side, inflation remains below central banks target and policymakers remain cautious about interest rate hike, which could affect the pace of Euro's bulls and fuel corrective action.
Res: 1.2296; 1.2323; 1.2350; 1.2400
Sup: 1.2208; 1.2187; 1.2167; 1.2119
Interested in EURUSD technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.