EUR/USD Price Forecast: Biding its time near 1.1550, awaiting US CPI numbers
- EUR/USD hovers below 1.1550 after pulling back from last week's highs at 1.1580.
- Hot German inflation has failed to lift the Euro, weighed by concerns about growing tensions in the Middle East.
- US Dollar rallies remain limited with investors awaiting the release of US CPI figures.
The Euro (EUR) nurses marginal gains against the US Dollar (USD) on Wednesday, with the EUR/USD pair flattening just below the 1.1550 level during the European trading session. FX volatility remains at unusually low levels as investors await the release of US Consumer Price Index (CPI) data to place directional bets on the USD.
Growing concerns about the fate of the US-Iran peace process are weighing on the Euro on Wednesday, as reports of attacks on vessels attempting to cross the Straits of Hormuz and Bab el-Mandeb on Tuesday have cast further doubt about the resumption of free sea traffic in the Gulf region.
In the Eurozone, the German Harmonised Index of Consumer Prices (HICP) confirmed preliminary figures pointing to an acceleration to a 2.8% year-over-year rate in July, from 2.4% in June, as energy inflation jumped to 7.3%, from 2.7% in the previous month. The positive impact on the Euro, however, has been short-lived.
US Dollar rallies, on the other hand, remain subdued, with investors awaiting the release of July's CPI figures for a better assessment of the Federal Reserve's (Fed) interest rate plans. The Market consensus anticipates a moderate slowdown in July’s consumer prices, with the yearly CPI growth easing to a 3.4% rate from 3.5% in June, with core inflation slowing down to a 2.5% year-on-year reading from the 2.6% rate posted in the previous month.
Technical Analysis: EUR/USD wavers in range lacking a clear bias
EUR/USD trades at 1.1535, holding in a neutral range between nearby structural levels. The 4-hour Relative Strength Index (14), around 48, suggests balanced momentum, while the Moving Average Convergence Divergence (MACD) remains slightly negative, altogether highlighting a lack of clear trend.
Bullish attempts were capped at 1.1580 last week, below the Mid-June highs at the 1.1620 area and the May 29 high, at 1.1685. On the downside, the 1.1500 area held bears last week ahead of a previous resistance area around 1.1480. A confirmation below these levels brings the late-July lows, at the 1.1355 area, back into focus.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Euro Price Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.00% | -0.12% | -0.13% | 0.05% | -0.10% | 0.23% | 0.10% | |
| EUR | -0.01% | -0.12% | -0.15% | 0.04% | -0.14% | 0.23% | 0.09% | |
| GBP | 0.12% | 0.12% | -0.04% | 0.15% | -0.04% | 0.35% | 0.21% | |
| JPY | 0.13% | 0.15% | 0.04% | 0.19% | 0.02% | 0.36% | 0.24% | |
| CAD | -0.05% | -0.04% | -0.15% | -0.19% | -0.17% | 0.19% | 0.05% | |
| AUD | 0.10% | 0.14% | 0.04% | -0.02% | 0.17% | 0.36% | 0.26% | |
| NZD | -0.23% | -0.23% | -0.35% | -0.36% | -0.19% | -0.36% | -0.12% | |
| CHF | -0.10% | -0.09% | -0.21% | -0.24% | -0.05% | -0.26% | 0.12% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
