EUR/USD finds intraday support at 1.2335 ahead of Eurozone inflation data

  • The Consumer Price Index (CPI), a key macroeconomic indicator is slated on Wednesday at 9:00 GMT. 
  • The US dollar is benefitting from a wave of optimism in Wall Street. 
  • Raphael Bostic, voting member on the FOMC, is scheduled to speak at 21:40 GMT.

The EUR/USD is currently trading at around 1.2362 down 0.13 % on Tuesday as the euro came under pressure after breaking 14 pips above the 1.2400 handle in the early European session. The price has found support at 1.2335 in the New-York session and is now consolidating around 1.2360. 

Coming up next on Tuesday is the speech from Raphael Bostic, a voting member on the FOMC, scheduled at 21:40 GMT. Wednesday will see tier-one data in the Eurozone with the Consumer Price Index (CPI). Investors will be on the lookout as inflation is a key indicator watched by the European Central Bank (ECB) in order to make decisions in regards to interest rates.  

In the European session, the ZEW Survey in the Eurozone and Germany came in below expectations adding pressure to a somewhat fragilized sentiment on the euro which started in the first part of last week. The recent move beyond 1.2400 is mainly attributed to US dollar weakness. 

US dollar bulls made a comeback in early Tuesday’s trading after finding a bottom on the US Dollar Index at 89.23. Investors chose to focus on the stellar earnings in the US and leave aside the worries about China, Russia and Syria. The US stocks are firing up on Tuesday. Earlier in the day, the better-than-expected US Industrial Production and housing data, as well as the Capacity Utilization numbers, underpinned the USD. 

Meanwhile, John Williams, San Francisco Federal Reserve President, in a speech earlier in the day, sees the median interest rates in the US hovering between 3% and 4% by 2020, which is a rather hawkish statement.

EUR/USD 4-hour chart

Support is at 1.2335 today’s swing low followed by the 1.2229 swing low. Resistances are seen at 1.2414 swing high made on Tuesday and then at the 1.2477 swing high.

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