EUR/USD Current price: 1.0799
- Market players await the release of the US Consumer Price Index on Wednesday.
- Federal Reserve speakers stand out in the American session.
- EUR/USD is poised to extend its advance in the near term, although volatility is limited.
The EUR/USD pair holds on to familiar levels, trading in a tight range just below the 1.0800 mark. Major currency pairs still struggle for direction amid the absence of fresh clues. Central banks have held their monetary policies on hold for longer than anticipated, as inflation refuses to come down to match policymakers’ goals, while the different employment sectors remain relatively tight.
Investors will try to get answers from upcoming United States (US) data, as the country will release the April Consumer Price Index (CPI) on Wednesday. The Federal Reserve (Fed) prefers to base its decision on another inflation measure, the Personal Consumption Expenditures (PCE) Price Index, but the CPI usually triggers interesting market reactions. In the meantime, the US Dollar trades with a soft tone against most major rivals, but price action seems contained.
Data-wise, Germany published a minor figure, the March Current Account, which posted a non-seasonally adjusted surplus of €27.6 billion, slightly below the February reading. The US session will bring multiple Fed officials’ speakers, who have lately had no relevant effect on the USD price.
EUR/USD short-term technical outlook
From a technical point of view, the risk skews to the upside, although additional gains are still unclear. The daily chart for the EUR/USD pair shows it is battling to overcome a mildly bearish 200 Simple Moving Average (SMA), while the 100 SMA provides resistance around 1.0840. The 20 SMA, in the meantime, aims north below the current level, reflecting increased buying interest. Finally, technical indicators hold within positive territory, although lacking clear directional strength.
According to the 4-hour chart, another leg north seems likely in the near term, particularly if EUR/USD breaks through 1.0810, the immediate resistance level. The pair is developing above all its moving averages, with the 20 SMA gaining bullish traction above the longer ones. Furthermore, technical indicators picked up momentum within positive levels, in line with an upward continuation.
Support levels: 1.0750 1.0695 1.0660
Resistance levels: 1.0810 1.0840 1.0885
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
EUR/USD stays around 1.0300 ahead of FOMC Minutes
EUR/USD stays under heavy selling pressure and trades around 1.0300 on Wednesday. News of US President-elect Donald Trump planning to declare an economic emergency to allow for a new tariff plan weighs on risk mood. US ADP misses expectations with 122K vs 140 anticipated.
GBP/USD drops to fresh multi-month lows, hovers around 1.2350
GBP/USD remains on the back foot and trades at its weakest level since April, around 1.2350. The risk-averse market atmosphere on growing concerns over an aggressive tariff policy by President-elect Donald Trump drags the pair lower as focus shifts to US FOMC Minutes.
Gold pressures fresh multi-week highs
Gold price (XAU/USD) advances modestly in a risk-averse environment. The benchmark 10-year US Treasury bond yield holds at its highest level since late April near 4.7%, making it difficult for XAU/USD ahead of FOMC Minutes.
Fed Minutes Preview: Key Insights on December rate cut and future policy plans
The Minutes of the Fed’s December 17-18 policy meeting will be published on Wednesday. Details surrounding the discussions on the decision to trim interest rates by 25 basis points will be scrutinized by investors.
Bitcoin edges below $96,000, wiping over leveraged traders
Bitcoin's price continues to edge lower, trading below the $96,000 level on Wednesday after declining more than 5% the previous day. The recent price decline has triggered a wave of liquidations across the crypto market, resulting in $694.11 million in total liquidations in the last 24 hours.
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.