EUR/USD Current Price: 1.1739
- The US annual Consumer Price Index was confirmed at 5.4%, above expected.
- Stocks rally, and US Treasury yields retreat, signaling market’s optimism.
- EUR/USD peaked at 1.1749, could keep advancing on a break above it.
The EUR/USD pair has spent the first half of the day depressed, bottoming at 1.1705 and bouncing modestly ahead of US inflation figures. Ahead of the release, stocks were extending their Tuesday’s advances while US Treasury yields soared, with the yield on the 10-year note peaking at 1.387%.
The US annual Consumer Price Index was confirmed at 5.4%, as previously estimated and above the 5.3% expected, while the core reading met expectations with 4.3%. Government bond yields retreated while US stocks soared and the greenback eased.
Earlier in the day, Germany confirmed July CPI at 3.8% YoY as previously estimated. Coming up next, Federal Reserve speakers Bostic and George may introduce some noise in financial markets.
EUR/USD short-term technical outlook
The EUR/USD pair hit 1.1749 with the news, bouncing from near March low at 1.1703. The 4-hour chart shows that the pair is trading just below a firmly bearish 20 SMA, while technical indicators head north almost vertically, although they are still developing within negative levels. The dollar will likely continue losing ground once above 1.1750, the immediate resistance level.
Support levels: 1.1705 1.1660 1.1620
Resistance levels: 1.1750 1.1790 1.1830
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.