EUR/USD: Bearish pressure could ramp up with a drop below parity
|EUR/USD has lots its traction following Tuesday's recovery attempt. AS FXStreet’s Eren Sengezer notes, parity comes back in play following correction.
Investors await June inflation data from the US
“Later in the session, the US Bureau of Labor Statistics will release the Consumer Price Index (CPI) data for June. Markets expect annual CPI to climb to a new multi-decade high of 8.8% from 8.6% in May. A ‘buy the rumor sell the fact’ action could be witnessed unless CPI figures surpass analysts' estimates. Weaker-than-forecast CPI prints, however, could trigger a risk rally in the near term and open the door for a rebound in EUR/USD.”
“In order to continue to push higher toward 1.0100 (psychological level, 20-pierodSMA) and 1.0150 (static level), the pair needs to clear 1.0050 (static level) and start using that level as support.”
“EUR/USD could face increasing bearish pressure and fall toward 0.9950 (static level from November 2002) and 0.9900 (psychological level) if buyers fail to defend 1.0000 (psychological level, multi-year lows set on July 12).”
See: US CPI Preview: Forecasts from 11 major banks, new peak but at headline
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.