The Euro regained traction after two-day pullback and rose on Monday, underpinned by higher than expected Spanish inflation HICP Jan 5.8% vs 4.7% f/c, Dec 5.5% and improving Eurozone economic sentiment (Jan 99.9 vs Dec 97.1, f/c 97.0), as strong figures partially offset negative impact from weak German Q4 GDP.
Markets shift focus to a number of economic events this week, with EU CPI report (inflation is expected to remain elevated) and Fed policy decision (expected 25 basis points hike) due on Wednesday and ECB meeting on Thursday (expected to raise interest rates by 50 basis points).
Technical studies are bullish on daily chart and the Euro is on track to end the fourth consecutive month with gains, though bulls need to clear strong barrier at 1.0930 (weekly cloud top) and 1.10 (psychological) to generate stronger signal of bullish continuation.
Immediate bullish bias is expected to remain intact while the action holds above daily Tenkan-sen (1.0847) , but extended dips cannot be ruled out, though expected not to be very harmful for larger bullish structure, while being contained above daily Kijun-sen (1.0706).
Res: 1.0930; 1.1000; 1.1072; 1.1184.
Sup: 1.0847; 1.0782; 1.0766; 1.0706.
Interested in EUR/USD technicals? Check out the key levels
- R3 1.096
- R2 1.093
- R1 1.0898
- PP 1.0868
- S1 1.0835
- S2 1.0805
- S3 1.0773
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