EUR/USD: Bounce stalls near 1.1140, eyes US inflation data

EUR/USD is struggling to post sustainable gains above 1.1140.
An above-forecast China data failed to put a bid under the EUR in Asia.
The dollar may run into offers on weak US CPI.

Omkar Godbole FXStreet Contributor

EUR/USD is flashing green, but the momentum of the bullish move from 1.1085 looks to have run out of steam in the 10-pip range of 1.1140-1.1150.

The hourly chart shows the pair has faced multiple rejections in the 1.1140-1.1150 range in the last 12 hours.

China's trade data for December released in Asia showed a big beat on both imports and exports – a sign of strengthening domestic and global demand conditions. Even so, the EUR failed to pick up a bid.

Focus on US data

The cost of living in the US, as represented by the consumer price index (CPI), rose 0.3% month-on-month in December, the official data due at 13:30 GMT is forecasted to show.

Meanwhile, the core CPI, which strips out food and energy, is seen rising 0.2%.

A weaker-than-expected figure could yield broad-based US dollar weakness, helping EUR/USD convincingly scale 1.1150. Note that the greenback was offered on Friday following the release of the dismal wage growth figures for December.

Technical levels

EUR/USD

Overview
Today last price	1.1136
Today Daily Change	-0.0002
Today Daily Change %	-0.02
Today daily open	1.1138

Trends
Daily SMA20	1.1141
Daily SMA50	1.1092
Daily SMA100	1.1066
Daily SMA200	1.114

Levels
Previous Daily High	1.1147
Previous Daily Low	1.1112
Previous Weekly High	1.1208
Previous Weekly Low	1.1085
Previous Monthly High	1.124
Previous Monthly Low	1.1002
Daily Fibonacci 38.2%	1.1134
Daily Fibonacci 61.8%	1.1126
Daily Pivot Point S1	1.1118
Daily Pivot Point S2	1.1097
Daily Pivot Point S3	1.1082
Daily Pivot Point R1	1.1153
Daily Pivot Point R2	1.1168
Daily Pivot Point R3	1.1188

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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