• EUR/USD stays under modest bearish pressure on Wednesday.
  • US Dollar Index rises for the fourth straight day.
  • Focus shifts to inflation data from the US.

After closing the seventh straight day in the negative territory, the EUR/USD pair extended its slide during the Asian trading hours and touched its lowest level since late March at 1.1700 before going into a consolidation phase. As of writing, the pair was posting small daily losses at 1.1710.

The unabated USD strength continues to weigh on EUR/USD. The US Dollar Index is currently trading at its strongest level in more than four months at 93.19, rising 0.13% on the day. 

Later in the session, Consumer Price Index (CPI) data from the US will be looked upon for fresh impetus. On a yearly basis, CPI in the US is expected to edge lower to 5.3% from 5.4%. Unless the print is much lower than expected, the greenback is likely to continue to outperform its rivals on the Fed's tapering prospects before the end of the year.

Earlier in the day, the Harmonized Index of Consumer Price (HICP) for Germany, the European Central Bank's preferred gauge of inflation, arrived at 3.1% in July, matching June's print and the market expectation. 

EUR/USD near-term outlook

Société Générale analysts think that EUR/USD could target 1.1600 with a break below 1.1700. “Support for EUR/USD below 1.1704 is at 1.1695. A deeper pullback towards 1.1600 beckons on a successful break," analysts explained. "A below-forecast number on US CPI today could elicit pockets of short-covering, only for the rally to be sold again."

EUR/USD to suffer a substantial drop to 1.16 on a slide below 1.17 – SocGen.

Additional levels to watch for

EUR/USD

Overview
Today last price 1.1711
Today Daily Change -0.0010
Today Daily Change % -0.09
Today daily open 1.1721
 
Trends
Daily SMA20 1.1811
Daily SMA50 1.191
Daily SMA100 1.1964
Daily SMA200 1.201
 
Levels
Previous Daily High 1.1743
Previous Daily Low 1.171
Previous Weekly High 1.19
Previous Weekly Low 1.1755
Previous Monthly High 1.1909
Previous Monthly Low 1.1752
Daily Fibonacci 38.2% 1.1723
Daily Fibonacci 61.8% 1.173
Daily Pivot Point S1 1.1706
Daily Pivot Point S2 1.1692
Daily Pivot Point S3 1.1673
Daily Pivot Point R1 1.1739
Daily Pivot Point R2 1.1758
Daily Pivot Point R3 1.1772

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD falls below 1.0500 after US NFP data

EUR/USD falls below 1.0500 after US NFP data

EUR/USD dropped below 1.0450 but managed to stage a modest rebound. The US Dollar preserves its strength against its rivals and doesn't allow the pair to gain traction after the data from the US showed that Nonfarm Payrolls rose by 263,000 in November.

EUR/USD News

GBP/USD turns south on upbeat US jobs report, trades below 1.2200

GBP/USD turns south on upbeat US jobs report, trades below 1.2200

GBP/USD lost nearly 100 pips with the immediate reaction to the upbeat November jobs report from the US and broke below 1.2200. The US Dollar Index clings to strong daily gains above 105.00 after the data showed that Nonfarm Payrolls rose by 263,000.

GBPUSD News

Gold retreats below $1,790 as US yields surge on US NFP

Gold retreats below $1,790 as US yields surge on US NFP

Gold price turned south and dropped below $1,790 in the early American session. The benchmark 10-year US Treasury bond yield is up more than 2% on the day near 3.6% after the bigger-than-expected November job growth, weighing heavily on XAU/USD.

Gold News

FTX exchange collapse, loss of $3.1 billion could have been avoided on one condition

FTX exchange collapse, loss of $3.1 billion could have been avoided on one condition

FTX exchange, founded by Samuel Bankman-Fried (SBF), has consistently made headlines over the past month for its liquidity crisis and triggering a collapse in the crypto ecosystem.

Read more

AMC advances more than 3% in premarket day after being halted

AMC advances more than 3% in premarket day after being halted

AMC stock is up 3.4% in Friday's premarket just a day after authorities halted trading due to unusual volatility. Thursday saw options volume three times higher than the 20-day average.

Read more

Forex MAJORS

Cryptocurrencies

Signatures