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Analysis

EUR/USD: Deflated by risk aversion on weak CPI numbers, ECB rate cut expectations

EURUSD ticked higher from three-week low (1.1056) in the US session on Tuesday but remains firmly in red after being deflated by risk aversion on deteriorating geopolitical situation and EU September CPI below target, fueling expectations for another ECB rate cut.

Bears faced headwinds after US data weakened dollar when the price approached strong technical support at 1.1032 (top of rising daily cloud).

A number of key US economic data, due this week, is expected to provide fresh direction signals, along with persisting geopolitical factor, though the pair has established in fresh downward trajectory and pressure key supports at 1.1032/00 (cloud top / psychological / Fibo 38.2% of 1.0666/1.1214 rally/ short-term range floor).

Res: 1.1107; 1.1140; 1.1181; 1.1200.
Sup: 1.1032; 1.1000; 1.0940; 1.0924. 

Interested in EUR/USD technicals? Check out the key levels

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