EUR/USD Current price: 1.1654
- ECB´s Francois Villeroy repeated that current inflation spikes are expected to be temporary.
- US Treasury yields surged to their highest since mid-May, retreating afterwards.
- EUR/USD is technically bullish but still needs to clear the 1.1670 resistance level.
The EUR/USD pair ticked higher on Wednesday, now trading a few pips below a daily high of 1.1657. The pair is up on the broad dollar’s weakness, with gains limited amid investors finding unattractive the shared currency. European Central Bank policymaker Francois Villeroy repeated that current inflation spikes are expected to be temporary.
The EU released the final version of the September Consumer Price Index, which was confirmed at 3.4% YoY in September, while the core annual reading printed at 1.9%, validating the European Central Bank’s wait-and-see stance. Earlier in the day, Germany published the September Producer Price Index, which rose 2.3% MoM and 14.2% YoY, beating expectations. Also, Bundesbank president Jens Weidmann has announced it will leave is position at the end of the year.
The US calendar has nothing relevant to offer, as the country published Mortgage Applications for the week ended October 15, which printed at -6.3%, much worse than the previous 0.2%. On Thursday, the EU calendar will include the preliminary estimate of October Consumer Confidence, while the US will release Initial Jobless Claims for the week ended October 15, and the October Philadelphia Fed Manufacturing Survey.
EUR/USD short-term technical outlook
The EUR/USD is trading near its weekly high, confined between Fibonacci levels, but poised to extend its advance. The pair is up for a third consecutive day after consolidating on Friday, although the rally started a week ago, when the pair bottomed at 1.1523. The daily chart shows that the pair continues advancing above its 20 SMA, which converges with a Fibonacci support at 1.1615. The longer moving averages maintain their bearish slopes well above the current level, while technical indicators head firmly higher within positive levels.
In the near term, and according to the 4-hour chart, the pair is bullish, although with limited momentum. It is developing above a bullish 20 SMA, which crossed above the 100 SMA and the 23.6% retracement of its latest daily slump at 1.1615. However, technical indicators are flat to bearish, holding within positive territory but reflecting limited buying interest. The pair needs to advance beyond 1.1670, the weekly high and the 38% retracement to confirm another leg north.
Support levels: 1.1615 1.1570 1.1525
Resistance levels: 1.1670 1.1715 1.1750
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
USD/JPY holds positive ground around 151.50 following Japanese CPI data
The USD/JPY pair holds positive ground for the second consecutive day near 151.45 on Friday during the early Asian trading hours. The cautious approach from the Bank of Japan to keep monetary conditions accommodative exerts some selling pressure on the Japanese Yen.
AUD/USD buyers lack vigor above 0.6500 amid Good Friday trading lull
AUD/USD is trading listlessly above 0.6500 in the Asian session amid light trading on Good Friday. The Aussie pair shrugs off encouraging comments from China's FX regulator, as price action remains subdued ahead of the US PCE inflation data.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Optimism price could fall as nearly $90 million worth of OP tokens is due flood markets
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.