The first part of Tuesday's trading session was uneventful, as the Euro was fluctuating in a narrow range against the US Dollar.
The market sentiment changed notably mid-session when the US published its CPI. The data matched expectations, thus alleviating the risk of Fed hiking interest rates at a faster pace. The US Dollar lost some ground against the Euro following this report, as well as responding to events involving the US Secretary of State. As a result, the Greenback fell 0.60% within a couple of hours.
Analysts expect that the pair's rally could continue during the following sessions up to the medium-term channel circa 1.2450. However, given the massive surge yesterday, bulls are likely to exhaust their positions for a couple of hours or even longer, thus allowing for a correction closer to the 1.2450 mark.
Interested in EURUSD technicals? Check out the key levels
- R3 1.2524
- R2 1.2467
- R1 1.2428
- PP 1.2371
- S1 1.2333
- S2 1.2276
- S3 1.2237
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.