EUR/USD analysis: inflation in the spotlight, with German CPI and US core PCE
|EUR/USD Current price: 1.1173
It was a dull Monday with holidays in most major markets keeping activity to the minimum across the FX board. China, the UK and the US, all remained closed at the beginning of the week. The only relevant event of the day was ECB's Draghi's testimony before the European Parliament, which added nothing new to what the market already knew. Draghi stressed the need for further monetary support, as despite the downside risks to the economic outlook have been diminishing, it's too early to retrieve it. The major issue, according to ECB's head is that underlying inflation has remained subdued as well as wage growth, insufficient to support a durable and self-sustaining convergence of inflation toward the medium-term objective.
The EUR/USD pair traded in the 1.1160/80 region all day long, with investors awaiting fresh clues, in the form of US and German preliminary May´s inflation, both scheduled to be released this Tuesday, alongside with EU latest confidence surveys. The technical picture in the short term favors a downward extension, although it will remain corrective due to ongoing dollar's weakness, unless the pair returns to territory sub-1.1000. In the 4 hours chart, technical readings present a neutral-to-bearish stance, with the price contained below a horizontal 20 SMA, and technical indicators heading marginally lower within negative territory.
Support levels: 1.1160 1.1120 1.1080
Resistance levels: 1.1220 1.1260 1.1300
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.