EUR/USD middled on Tuesday after mixed US CPI inflation print pins pair

EUR/USD cycled within 1.0950 and 1.0900 as momentum remains capped.
German inflation brought no surprises, US inflation spreads after headline CPI uptick.
Midweek brings EU Industrial Production as markets brace for Thursday’s US PPI print.

Joshua Gibson FXStreet

The EUR/USD spent most of Tuesday cycling familiar territory, with the pair churning chart paper just north of 1.0900. Final German inflation figures printed exactly as expected, while a mixed print for US Consumer Price Index (CPI) inflation saw investors shrug off inflation concerns and continue to bet on rate cuts from the Federal Reserve (Fed).

February’s headline US CPI inflation ticked up to 0.4%, rising from the previous 0.3%, with YoY CPI inflation rising to 3.2% compared to the forecast hold at 3.1%. Core CPI numbers eased, but not as much as expected, with MoM Core CPI holding at 0.4% instead of declining to the forecast 0.3%. YoY Core CPI ticked down to 3.8% from the previous 3.9%, but missed market forecasts of 3.7%.

Wednesday’s EU Industrial Production is forecast to print at -1.5% MoM in January, down from the previous month’s 2.6%. US data hits will be taking a breather in the midweek before returning on Thursday with US Producer Price Index (PPI) figures. Core YoY US PPI is forecast to tick down slightly to 1.9% from the previous 2.0%.

US Retail Sales in February are also slated for Thursday, and are expected to recover to 0.8% after the previous -0.8% decline. US Initial Jobless Claims for the week ended March 8 is also expected to tick up slightly to 218K from 217K.

EUR/USD technical outlook

EUR/USD ended Tuesday close to where it started, seeing a shock drop near 1.0900 after US CPI figures printed, but the pair recovered into the day’s midrange near 1.0930. The EUR/USD set a fresh weekly high at 1.0980 on Monday, and the pair continues to see near-term technical support from a shortrun rising trendline.

A bullish recovery from the last major swing low into the 1.070 handle in mid-February sees the pair running out of gas north of the 200-day Simple Moving Average (SMA) at 1.0836. There is a lot of chart ground to cover before bulls can reclaim the last major high above 1.1100 set back in late December.

EUR/USD hourly chart

EUR/USD daily chart

EUR/USD

Overview
Today last price	1.0927
Today Daily Change	0.0001
Today Daily Change %	0.01
Today daily open	1.0926

Trends
Daily SMA20	1.0832
Daily SMA50	1.0854
Daily SMA100	1.0845
Daily SMA200	1.0835

Levels
Previous Daily High	1.0948
Previous Daily Low	1.0914
Previous Weekly High	1.0981
Previous Weekly Low	1.0838
Previous Monthly High	1.0898
Previous Monthly Low	1.0695
Daily Fibonacci 38.2%	1.0927
Daily Fibonacci 61.8%	1.0935
Daily Pivot Point S1	1.0911
Daily Pivot Point S2	1.0896
Daily Pivot Point S3	1.0877
Daily Pivot Point R1	1.0944
Daily Pivot Point R2	1.0963
Daily Pivot Point R3	1.0978

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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