EUR/USD stays bid around 1.1840, US CPI eyed

Spot quickly surpassed late-October tops around 1.1830.
Offered USD stays behind the up move.
Attention is on US CPI, tax reform vote (Thursday).

Pablo Piovano FXStreet

The selling bias around the greenback continues to give oxygen to the upside momentum in EUR/USD, which is now stabilizing in the mid-1.1800s.

EUR/USD focused on US data

The pair has quickly left behind the 1.1830 area today, which was an interim resistance and represents the highest level recorded on October 27, when the ECB held its latest meeting. Furthermore, spot convincingly broke above the 1.1660/70 region on Tuesday, the ‘neckline’ of the H&S pattern seen in August-October.

The increasing weakness around the greenback stays by large the exclusive driver behind the pair’s correction higher, as the rising uncertainty surrounding the US tax reform plan forced the US Dollar Index (DXY) to breach the critical 94.00 support.

The up move in the pair has also been in tandem with declining yields of the key US-10 year reference, which shed around 8 bps since yesterday’s weekly peaks above the 2.41% level.

Looking ahead, the buck should stay under the microscope in light of the publication of October’s US CPI figures and retail sales, all preceding November’s NY Empire State index.

EUR/USD levels to watch

At the moment, the pair is up 0.36% at 1.1839 and a breakout of 1.1852 (high Nov.15) would open the door to 1.1860 (high Oct.20) and then 1.1882 (high Oct.12). On the flip side, the next support emerges at 1.1738 (100-day sma) seconded by 1.1693 (21-day sma) and finally 1.1663 (10-day sma). In addition, FXStreet’s Technical Confluences Indicator (TCI) is noting an important support zone in the 1.1760 area, where sit a pivot point and a monthly Fibo retracement.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

AUD/USD keeps the red near 0.6950 after weak Aussie jobs data

AUD/USD holds losses near 0.6950 on disappointing Australian jobs data, extending the previous day's retracement slide from the monthly high and hitting a fresh weekly low during Thursday’s Asian session. Meanwhile, declining US bond yields drag the US Dollar away from the April 2025 high, touched after Wednesday's hot US CPI, helping limit losses for the currency pair.

USD/JPY slides back below 158.00 as USD reverses post-CPI gains

USD/JPY extends the previous day's pullback from a three-week high, attracting follow-through selling and sliding below 158.00 during Thursday's Asian session. Traders remain on high alert amid speculation that authorities will step in to prop up the Japanese Yen. The US Dollar, meanwhile, reverses Wednesday's hot CPI-led gains to April 2025 highs as US bond yields retreat on China bond-buying talk, further pressuring the pair.

Gold rebounds firmly as China Treasuries-buying report smashes US yields

Gold stages a solid comeback from weekly lows, retakes $4,150 early Thursday. US Dollar declines sharply alongside Treasury yields on China’s bond-buying report. Technically, the daily RSI remains bearish and a headwind for Gold buyers.

Bitcoin falls on hot CPI: Why $80,000 support matters

Bitcoin's (BTC) most critical level to watch is near $80,000 as September's hot inflation reading pressures the crypto market, according to Glassnode. The top crypto declined within minutes of the September Consumer Price Index (CPI) release, which showed a 3.7% annual increase in headline inflation, above forecasts of 3.6%. Core inflation, which excludes food and energy prices, came in at 2.6%.

China seems routing US Treasury holdings through Canada

According to a Bloomberg report, China seems to be moving United States securities to non-US custodian banks in other countries, masking its role in financing US deficits.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?