EUR/USD Technical Analysis: Tests an important confluence resistance ahead of US CPI

Haresh Menghani FXStreet

• The pair kept pushing higher through the mid-European session and tested an important confluence hurdle near the 1.1580-85 region, comprising of 50-day SMA and 38.2% Fibonacci retracement level of the 1.1815-1.1432 recent downfall.

• The fact that the pair is holding comfortably above important intraday moving averages - 50, 100 & 200-hour SMA, bullish technical indicators on hourly charts point to an extension of the positive momentum.

• However, indicators on the daily chart are yet to catch up with the positive momentum and hence, it would be prudent to wait for a convincing break through the 1.1580-85 confluence resistance before positioning for any further near-term up-move.

• Today's release of the latest US consumer inflation figures might influence Fed rate hike expectations and eventually play an important role in determining the pair's next leg of directional move.

EUR/USD daily chart

EUR/USD

Overview:
    Last Price: 1.1576
    Daily change: 55 pips
    Daily change: 0.477%
    Daily Open: 1.1521
Trends:
    Daily SMA20: 1.1625
    Daily SMA50: 1.1585
    Daily SMA100: 1.163
    Daily SMA200: 1.1925
Levels:
    Daily High: 1.1546
    Daily Low: 1.148
    Weekly High: 1.1625
    Weekly Low: 1.1464
    Monthly High: 1.1816
    Monthly Low: 1.1464
    Daily Fibonacci 38.2%: 1.1521
    Daily Fibonacci 61.8%: 1.1505
    Daily Pivot Point S1: 1.1485
    Daily Pivot Point S2: 1.1449
    Daily Pivot Point S3: 1.1419
    Daily Pivot Point R1: 1.1552
    Daily Pivot Point R2: 1.1582
    Daily Pivot Point R3: 1.1618

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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