EUR/USD headed back to session low, US data in focus

Haresh Menghani FXStreet

Despite of in-line with estimates Euro-zone inflation data, the EUR/USD pair maintained its bearish bias and has now dropped to the lower end of daily range.

Currently trading around 1.0685-80 region, the pair failed to benefit from the final Euro-zone CPI print that matched initial estimates and came-in at 1.1% y-o-y and remained below 1.0700 strong barrier.

Meanwhile, a broad base greenback recovery, following yesterday's slump in wake of Trump's comments on strong US Dollar, also collaborated to the pair's retracement from over one-month high touched yesterday.

Traders now look forward to the release of US CPI print, industrial production and capacity utilization data for fresh momentum during early NA session. Meanwhile, the Fed Chair Janet Yellen's speech would also be in focus and might provide some impetus ahead of Trump's inauguration on Friday.

Technical levels to watch

A follow through retracement below 1.0665-60 immediate support is likely to drag the pair back towards 50-day SMA support near 1.0600 round figure mark. A follow through selling pressure has the potential to continue dragging the pair further towards its next support near 1.0565 region ahead of 1.0500 psychological mark.

On the upside, 1.0700 handle now seems to have emerged as immediate strong hurdle, which if cleared is likely to accelerate the move towards 1.0760-65 intermediate resistance, en-route 1.0800 handle and 1.0820-25 resistance.

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

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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