EUR/USD Current price: 1.2382
- EU inflation disappointed, but dollar remains the weakest.
- EUR/USD faces a major resistance around 1.2410/20.
The EUR/USD pair recovered the ground lost Tuesday and neared again the 1.2400 figure, but remained below it as the latest EU CPI was a drag for the common currency. According to the official release, inflation was up 1.3% YoY in March, below the 1.4% expected, although the core readings came as expected, up 1.4% in the month and 1% YoY. Furthermore, Construction Output in the EU was down 0.5% in February, missing market's expectations of a 0.2% advance, while the YoY figure posted a shy 0.4% gain vs. the expected 2.3%. The pair posted a negative reaction to the release, moreover as UK inflation released a few minutes before was also discouraging and weighed on the Pound, but the dollar was unable to actually appreciate, and begun easing on self-weakness.
Equities struggled around their opening events both in Europe and the US, easing the previous strong momentum, probably also affecting demand for the American currency. This Thursday, the macroeconomic calendar will offer minor figures from both economies, as the EU will unveil February Current Account numbers, while the US will offer its usual weekly unemployment figures and the Philly manufacturing survey for April.
The pair is at the upper end of its weekly range, but still within familiar ranges and with no signs of clear directional strength. In the short term, and according to the 4 hours chart, the risk is skewed to the upside, as the pair develops above a bullish 20 SMA, which advances above the larger ones, while technical indicators hold within positive territory, albeit the Momentum having lost its upward strength, and the RSI now at 60, well below the peak reached when the price touched 1.2413 earlier this week. The 1.2410/20 region is a key resistance area that should be clearly broken to trigger additional gains ahead, as the pair topped around it multiple times over the last few weeks, and where now is the daily descendant trend line coming from this year high.
Support levels: 1.2370 1.2335 1.2295
Resistance levels: 1.2415 1.2445 1.2480
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.