EUR/USD Current price: 1.0680
Majors were mostly consolidating this Wednesday, with the EUR/USD pair ending the day marginally lower, at 1.0680. The American dollar corrected higher as a sign of relief, but gains were mostly shallow, with the common currency quickly rebounding from an intraday slide towards the 1.0650 region. Restricting market's activity is the upcoming ECB's monetary policy meeting this Thursday, in which Mario Draghi & Co. are expected to maintain the status quo, but offer a more optimistic statement, given the uptick in the region's inflation, among other signs of economic growth during the second half of 2016.
In the data front, Germany and the EU released the final revisions of December CPI, which matched expectations and previous estimates, passing unnoticed when it comes to price action. In the US, the Consumer Price Index increased 0.3% in December on a seasonally adjusted basis, while over the 12 previous months, the index rose by 2.1%, also in line with market's forecast. Industrial production rebounded in December, climbing 0.8%, although November figure was downwardly revised to -0.7%, while the capacity of utilization rose to 75.5% in the same month.
Technically, the EUR/USD pair remains bullish, although the daily consolidation has made technical indicators lose upward momentum. Nevertheless and in the 4 hours chart, the price is above a bullish 20 SMA, whilst the 100 SMA advanced to meet the 200 SMA, both around 1.0550 now. A major Fibonacci resistance comes at 1.0710, as the level stands for the 38.2% retracement of the November/January slide, with renewed buying interest above it opening doors for an advance towards the 1.0800 region. An unexpectedly dovish Draghi can trigger a downward correction, although declines beyond 1.0565 are unlikely during the upcoming sessions.
Support levels: 1.0650 1.0610 1.0565
Resistance levels: 1.0710 1.0750 1.0800
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 clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.