EUR/USD Current Price: 1.0769
- ECB and Fed speakers flooding the macroeconomic calendar at the beginning of the week.
- Investors await the United States January Consumer Price Index before jumping in.
- EUR/USD trades with a softer tone after failing to advance beyond 1.0800.
The EUR/USD pair retreated after reaching a one-week high of 1.0805 and trades around 1.0770 ahead of the United States (US) opening. Financial markets kick-started the week cautiously, awaiting the release of fresh US inflation data. The country will publish the January Consumer Price Index (CPI) a critical guidance for future Federal Reserve's (Fed) decisions. Adding to the market's quiet stance, major Asian markets were closed amid local holidays at the beginning of the week.
Meanwhile, easing US Treasury bond yields undermine demand for the US Dollar. The 10-year note currently offers 4.16%, down 3 basis points (bps) from its previous close. Wall Street, on the other hand, reflects a better mood. The tech sector leads the advance, with the S&P 500 trading at record levels ahead of the opening. Further gains there will likely maintain the USD at check.
Data-wise, the macroeconomic calendar has little to offer, although multiple central banks' officials will be on the wires. European Central Bank (ECB) Governing Council member Pablo Hernandez de Cos said the ECB's March economic projections will be pivotal for deciding when to start cutting interest rates. Executive Board member Philip Lane will be next to hit the wires, followed by a row of Fed speakers in the American session.
EUR/USD short-term technical outlook
The EUR/USD pair trades in the red after advancing in the previous four days, and the technical picture suggests bears will maintain the pressure. Technical indicators in the daily chart develop below their midlines with neutral to bearish slopes, reflecting increased selling interest. At the same time, a directionless 100 Simple Moving Average (SMA) provides resistance at around 1.0790, with spikes beyond the level being quickly reverted. Finally, the 20 SMA keeps heading south above the longer one, in line with the bearish tone.
The 4-hour chart shows EUR/USD has pierced a flat 20 SMA and is currently developing below it, as the longer moving averages head south far above the shorter one. At the same time, technical indicators rotated south and break through their midlines, although their directional strength seems limited. Sellers will be looking for a slide through 1.0720 to confirm the bearish bias and add to their shorts.
Support levels: 1.0720 1.0695 1.0650
Resistance levels: 1.0790 1.0840 1.0880
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.
Recommended Content
Editors’ Picks
AUD/USD: Next on the downside comes 0.6500
Further gains in the US Dollar kept the price action in commodities and the risk complex depressed on Tuesday, motivating AUD/USD to come close to the rea of the November low near 0.6500.
EUR/USD pierces 1.06, finds lowest bids in a year
EUR/USD trimmed further into low the side on Tuesday, shedding another third of a percent. Fiber briefly tested below 1.0600 during the day’s market session, and the pair is poised for further losses after a rapid seven-week decline from multi-month highs set just above 1.1200 in September.
Gold struggles to retain the $2,600 mark
Following the early breakdown of the key $2,600 mark, prices of Gold now manages to regain some composure and reclaim the $2,600 level and beyond amidst the persistent move higher in the US Dollar and the rebound in US yields.
SOL Price Forecast: Solana bulls maintain $250 target as Binance lists ACT and PNUT
Solana price retraced 7% from $225 to $205 on Tuesday, halting a seven-day winning streak that saw SOL become the third-largest cryptocurrency by market capitalization.
Five fundamentals: Fallout from the US election, inflation, and a timely speech from Powell stand out Premium
What a week – the US election lived up to their hype, at least when it comes to market volatility. There is no time to rest, with politics, geopolitics, and economic data promising more volatility ahead.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.