EUR/USD Price Analysis: Bulls keep the reins ahead of US inflation

EUR/USD stays firmer around seven-month high, approaching mid-2022 top.
Nearly overbought RSI challenges buyers as they brace for key hurdles.
Looming bull cross on MACD, clear upside break of one-month-old descending trend line favor bulls.
EUR/USD buyers can aim for ascending trend line from mid-November on crossing 1.0805.

Anil Panchal FXStreet

EUR/USD bulls take a breather around the highest levels since June 2022, marked the previous day, as they brace for the key US Consumer Price Index (CPI) data for December during early Thursday. In doing so, the major currency pair prints mild gains around 1.0775 by the press time.

A successful break of a descending trend line from December 15, 2022, around 1.0685 by the press time, joins the looming bull cross on the MACD to keep buyers hopeful. However, the RSI (14) line is near the overbought conditions and suggests limited upside room for the pair.

As a result, the May 2022 peak of 1.0786 appears a major challenge for the EUR/USD bulls, a break of which will highlight the March 2022 bottom surrounding 1.0805 as the next key hurdle for the upside momentum.

In a case where the EUR/USD pair manage to remain firmer past 1.0805, the odds of witnessing a run-up towards a two-month-old ascending resistance line, close to 1.0965 at the latest, can’t be ruled out.

On the flip side, pullback moves may initially aim for a December 2022 high of 1.0736 before resting on the resistance-turned-support line near 1.0685.

In a case where EUR/USD remains bearish past 1.0685, a downward trajectory towards the monthly low of 1.0483 can be witnessed.

EUR/USD: Daily chart

Trend: Limited upside expected

Additional important levels

Overview
Today last price	1.077
Today Daily Change	0.0016
Today Daily Change %	0.15%
Today daily open	1.0754

Trends
Daily SMA20	1.0635
Daily SMA50	1.0463
Daily SMA100	1.0173
Daily SMA200	1.0311

Levels
Previous Daily High	1.0776
Previous Daily Low	1.0726
Previous Weekly High	1.071
Previous Weekly Low	1.0483
Previous Monthly High	1.0736
Previous Monthly Low	1.0393
Daily Fibonacci 38.2%	1.0757
Daily Fibonacci 61.8%	1.0745
Daily Pivot Point S1	1.0728
Daily Pivot Point S2	1.0701
Daily Pivot Point S3	1.0677
Daily Pivot Point R1	1.0778
Daily Pivot Point R2	1.0803
Daily Pivot Point R3	1.0829

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

AUD/USD sticks to positive bias above 0.7100; lacks bullish conviction

AUD/USD trades with a positive bias for the second straight day, holding above 0.7100 in the Asian session on Friday as softer US bond yields keep US Dollar bulls on the back foot. Furthermore, hawkish RBA Governor Bullock's comments boost rate hike bets and support the Aussie. However, the Fed's hawkish outlook, along with geopolitical uncertainties, limits USD losses and caps the pair.

USD/JPY approaches 158.00 as Japanese Yen resumes decline

USD/JPY is resuming its upside in the European session on Friday, refreshing two-week highs and nearing 158.00. The Japanese Yen extends losses, despite the Bank of Japan's (BoJ) expected rate hike to 1.25% and hawkish Governor Ueda's comments, as two surprise dissents against the rate hike weigh on it.

Gold keeps the bid tone in place; still below $4,400

Gold adds to the optimism seen in the second half of the week, trading with decent gains just below the $4,400 mark per troy ounce on Friday. The precious metal’s advance finds traction in declining crude oil prices and fresh selling pressure on the US Dollar.

Why altcoin season isn't coming back — and what stole its capital

If, after two years of being frozen in ice, Katara and Sokka woke you up to the crypto market, it would seem like 100 years have passed. With Bitcoin soaring to record highs just over a year ago, everyone expected a routine altcoin season, where investors take profits from the top crypto to chase higher returns in altcoins.

BoJ Recap: Not as hawkish as expected

The BoJ raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks. Governor Kazuo Ueda said the policy phase had changed.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.