EUR/USD advances towards 1.0800 with the US CPI data on focus

Guillermo Alcala FXStreet

The Euro trims losses as the US Dollar pulls back ahead of the US CPI release
US Inflation and the Fed decision will set the Dollar’s near-term direction.
EUR/USD’s immediate trend remains bearish while below 1.0815.

The Euro is moving with a moderately positive tone during the European morning trade, reaching intra-day highs near 1.0800 as the Dollar loses footing ahead of the release of US CPI figures.

US CPI and the Fed will set the Dollar’s direction

Later today, the US Bureau of Labor Statistics is expected to announce that US inflation edged down to 3.!% in the last twelve months to November and that the core CPI remained steady at 4%.

These figures will be analyzed with particular detail today, with all eyes on Wednesday’s Federal Reserve’s monetary policy decision. Investors’ speculation about the timing for a Fed pivot is the main driver behind FX markets and, in that context, any surprise in the inflation trends might have a significant impact on US Dollar crosses.

EUR/USD Technical analysis

The pair’s corrective reversal from late November highs has found support on the 50% Fibonacci retracement of the October - November rally, at 1.0730.

The near-term bias remains negative with 1.0815, where previous highs meet the 4h 50 SMA, likely to offer a significant resistance. Above here, 1.0880 will come next.

Supports are at the mentioned 1.0730 and early November lows at 1.0660.

EUR/USD technical levels to watch

EUR/USD

Overview
Today last price	1.0787
Today Daily Change	0.0022
Today Daily Change %	0.20
Today daily open	1.0765

Trends
Daily SMA20	1.0874
Daily SMA50	1.071
Daily SMA100	1.0761
Daily SMA200	1.0823

Levels
Previous Daily High	1.0779
Previous Daily Low	1.0742
Previous Weekly High	1.0895
Previous Weekly Low	1.0724
Previous Monthly High	1.1017
Previous Monthly Low	1.0517
Daily Fibonacci 38.2%	1.0765
Daily Fibonacci 61.8%	1.0756
Daily Pivot Point S1	1.0745
Daily Pivot Point S2	1.0725
Daily Pivot Point S3	1.0707
Daily Pivot Point R1	1.0782
Daily Pivot Point R2	1.0799
Daily Pivot Point R3	1.0819

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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