EUR/USD drops further to test daily pivot ahead of CPIs

Dhwani Mehta FXStreet

EUR/USD’s reversal from six-week tops gained further traction in early Europe, now pushing the rate further below 1.07 handle.

EUR/USD awaits German, Euroland and US CPI data

Currently, the spot now drops -0.26% to 1.0684, wavering within close proximity to the daily lows struck previously at 1.0681 levels. The EUR/USD pair fell back into the red zone after an extensive rally witnessed a day before, as the traders are seen unwinding the Trump trade ahead of the highly-influential US CPI figures due later on Wednesday.

The US dollar experienced a double whammy and was sold-off aggressively amid a GBP shorts-squeeze and Trump’s caution over a stronger USD, which tempered hopes of a fiscal stimulus and weighed dramatically on the US treasury yields across the time horizon.

Focus now shifts towards the fundamentals from both continents, with the inflation data release to dominate the moves in EUR/USD in the day ahead. The German CPI data will be published before the Eurozone final CPI reading, while the US CPI, industrial production and Fedspeaks will wrap up an eventful economic calendar for today.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0700 (round figure). A break beyond the last, doors will open for a test of 1.0746 (Nov 17 high) and from there to 1.0776 (100-DMA). On the flip side, the immediate support is placed at 1.0654 (5-DMA) below which 1.0612 (10-DMA) and 1.0556 (50-DMA) could be tested.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.0680

60% Bullish
20% Bearish
20% Sideways

Bias Bullish

1 Month

Avg Forecast 1.0574

35% Bullish
53% Bearish
12% Sideways

Bias Bearish

1 Quarter

Avg Forecast 1.0395

9% Bullish
59% Bearish
32% Sideways

Bias Bearish

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.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.