EUR/USD advances towards 1.0800 with the US CPI data on focus
|
- The Euro trims losses as the US Dollar pulls back ahead of the US CPI release
- US Inflation and the Fed decision will set the Dollar’s near-term direction.
- EUR/USD’s immediate trend remains bearish while below 1.0815.
The Euro is moving with a moderately positive tone during the European morning trade, reaching intra-day highs near 1.0800 as the Dollar loses footing ahead of the release of US CPI figures.
US CPI and the Fed will set the Dollar’s direction
Later today, the US Bureau of Labor Statistics is expected to announce that US inflation edged down to 3.!% in the last twelve months to November and that the core CPI remained steady at 4%.
These figures will be analyzed with particular detail today, with all eyes on Wednesday’s Federal Reserve’s monetary policy decision. Investors’ speculation about the timing for a Fed pivot is the main driver behind FX markets and, in that context, any surprise in the inflation trends might have a significant impact on US Dollar crosses.
EUR/USD Technical analysis
The pair’s corrective reversal from late November highs has found support on the 50% Fibonacci retracement of the October - November rally, at 1.0730.
The near-term bias remains negative with 1.0815, where previous highs meet the 4h 50 SMA, likely to offer a significant resistance. Above here, 1.0880 will come next.
Supports are at the mentioned 1.0730 and early November lows at 1.0660.
EUR/USD technical levels to watch
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.