- EUR/USD trapped sellers on the wrong side of the market last week.
- A weaker-than-expected German CPI would validate ECB's recent dovish turn.
- The US central bank is expected to keep rates and confirm that it is on a wait and watch mode.
The EUR/USD pair is currently trading at 1.1438, having clocked a two-week high of 1.1450 yesterday.
On Friday, the currency pair witnessed a biggest single-day rise since Sept. 20, neutralizing the bearish view put forward by the downside break of the trendline rising from the November lows on the previous day. Essentially, the pair trapped the bears on the wrong side of the market.
The positive turnaround, however, could be short-lived if the German consumer price index misses estimates, validating the European Central Bank's (ECB) recent dovish turn. Last week, the central bank downgraded assessment on the economy, leaving the forward guidance wording unchanged.
The data, due for release at 13:00 GMT, is expected to show that the cost of living rose 1.6 percent year-on-year in January; having jumped 1.7 percent in December.
Meanwhile, the FOMC is expected to keep rates unchanged and confirm the message delivered by the recent round of Fed speakers - the central bank has time to sit back and review rate hikes and its impact on the economy.
The dollar, however, could pick up a strong bid, pushing the EUR/USD lower if Fed's Powell downplays recent reports that the central bank is planning to end the quantitative tightening program sooner-than-expected.
EUR/USD Technical Levels
EUR/USD
Overview:
Today Last Price: 1.1437
Today Daily change: 0.0004 pips
Today Daily change %: 0.03%
Today Daily Open: 1.1433
Trends:
Daily SMA20: 1.1415
Daily SMA50: 1.1391
Daily SMA100: 1.1448
Daily SMA200: 1.1571
Levels:
Previous Daily High: 1.1451
Previous Daily Low: 1.1411
Previous Weekly High: 1.1418
Previous Weekly Low: 1.1289
Previous Monthly High: 1.1486
Previous Monthly Low: 1.1269
Daily Fibonacci 38.2%: 1.1436
Daily Fibonacci 61.8%: 1.1427
Daily Pivot Point S1: 1.1412
Daily Pivot Point S2: 1.1392
Daily Pivot Point S3: 1.1372
Daily Pivot Point R1: 1.1453
Daily Pivot Point R2: 1.1472
Daily Pivot Point R3: 1.1493
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD met some decent resistance above 1.0700
EUR/USD remained unable to gather extra upside traction and surpass the 1.0700 hurdle in a convincing fashion on Wednesday, instead giving away part of the weekly gains against the backdrop of a decent bounce in the Dollar.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold keeps consolidating ahead of US first-tier figures
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Bitcoin price could be primed for correction as bearish activity grows near $66K area
Bitcoin (BTC) price managed to maintain a northbound trajectory after the April 20 halving, despite bold assertions by analysts that the event would be a “sell the news” situation. However, after four days of strength, the tables could be turning as a dark cloud now hovers above BTC price.
Bank of Japan's predicament: The BOJ is trapped
In this special edition of TradeGATEHub Live Trading, we're joined by guest speaker Tavi @TaviCosta, who shares his insights on the Bank of Japan's current predicament, stating, 'The BOJ is Trapped.' Coach Dale probes into Tavi's views on the so-called 'money on the sidelines,' leading to a detailed discussion about the relatively small percentage of investments in gold and miners.