EUR/USD: A phase of consolidation ahead of US CPI, Fed?
Having witnessed a volatile session a day before, EUR/USD extends its overnight side-trend into Europe, fluctuating between gains and losses as dust settles over the US data dump aftermath.
EUR/USD awaits US CPI amid thin trades
Currently, EUR/USD trades almost unchanged at 1.1240, unable to make a decisive break above 1.1250 barrier. The main currency pair is seen oscillating back and forth in a 10-pips narrow range so far this session, almost replicating the range-play witnessed in the Asian session on Thursday.
The major trades directionless and appears in search of fresh incentives as markets continue to assess yesterday’s dataflow from the US, which came out largely disappointing and is expected to weigh on the Fed’s rate hike prospects going forward. The US retail sales, industrial production and PPI missed estimates, while the Philly Fed manufacturing gauge turned out upbeat in the reported month.
Next in focus for the major remains the US CPI data, as the EUR macro calendar remains almost empty for today. Next week, the main highlight remains the FOMC decision due out on Wednesday, which is likely to shape up next direction in the major.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance 1.1300 (round number). A break beyond the last, doors will open for a test of 1.1343 (Aug 28 high). On the flip side, the immediate support is placed at 1.1200 (round figure) below which 1.1179/76 (200 & 100-DMA) could be tested.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
