Forex: EUR/USD stalled after EMU CPI (Barcelona) - The European morning plunge from 1.3120 high found a low through a spike to 1.3068 with all flash Markit PMI data in the Eurozone released and the affirmed AAA rating with negative outlook to France by Fitch. The publication of EMU CPI and employment change isn't pushing for any kind of movement in the market. The EUR/USD is stalled at 1.3080/85 for now.

The EMU CPI inflation report indicates an annualized drop from 2.5% to 2.2% in December, as expected. The core figure eased unexpectedly from 1.5% to 1.4%. Employment change in the Eurozone remained at -0.7% in Q3 (YoY), while the quarterly change disappointed by contracting -0.2%.

“The 1.2880 support manages to restrict the bearish movement of the pair for the time being”, wrote analyst Stoyan Mihaylov, pointing to the importance of a test of 1.3120, while on higher frames the bias is bearish.