EUR/USD keeps range near 1.0700 on Eurozone inflation

Dhwani Mehta FXStreet

EUR/USD trims losses, although steadies in the familiar range near 1.07 handle, following the release of in-line with expectations Eurozone inflation data.

EUR/USD eyes on US CPI, Fed’s Yellen

Currently, the spot now drops -0.17% to 1.0693, having failed once again above 1.07 barrier. The EUR/USD pair moved-off session highs and trades with moderate losses as the greenback clings onto recovery gains witnessed after yesterday’s sell-off, triggered by Trump’s comments on the US currency.

While euro fails to benefit from the Eurozone final CPI print, which matched consensus forecasts. The Eurozone Dec CPI arrived at 1.1% y/y vs 1.1% exp expectations, confirming the flash estimate and rising from November’s 0.6%.

With the German and Eurozone inflation data now out of the way, the major awaits the release of the US CPI and industrial production figures due later in the NA session for further momentum. While Fed Chair Yellen’s and Fed official Kashkari’s speech will also hog the limelight, in wake of Trump’s inauguration scheduled later this week.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0715 (daily high). 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 1.0655 (5-DMA) below which 1.0613 (10-DMA) and 1.0556 (50-DMA) could be tested.

1. R3 1.0875
2. R2 1.0797
3. R1 1.0751
PP 1.0674
1. S1 1.0628
2. S2 1.0550
3. S3 1.0504

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.

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