EUR/USD awaits range break-out

13 March, 2018

Bulls making another attempt to regain 1.2350. The US inflation to provide the next direction. The EUR/USD pair extends its range trade into a third day today, as markets refrain from placing big bets on the US dollar ahead of the critical US inflation report, which will shape up the outlook on the US interest rates.

Markets are expecting the headline US CPI numbers to decelerate to 0.2% m/m versus 0.5% previous while on an annualized basis, the consumer spending is seen improving slightly 2.2% versus 2.1% last.

Meanwhile, on the EUR-side of the equation, a lack of fresh fundamental drivers combined with the risk of the EU’s retaliation to the US trade tariffs continue to weigh negatively on the common currency. Further, expectations of dovish comments due to be delivered by the ECB President tomorrow also keeps a lid on the upside.

All eyes now remain on the US CPI figures for fresh trading impetus. In the meantime, the major will remain at the mercy of the USD dynamics.

Karen Jones, Analyst at Commerzbank, notes: “EUR/USD continues to be range bound within its February and early March boundaries at 1.2556/1.2155. Minor support is offered by the 55-day moving average at 1.2258 which is currently being targeted. Below it lies the 1.2165/55 area, made up of the mid-January and current March lows. Further sideways trading between these levels and the current March high at 1.2447 remains on the cards. If the 1.2447 level were to be exceeded the January and February highs at 1.2538/56 would be back in the picture”.


Source link   Presented by HYCM

EUR/USD consolidates around 1.13400

The financial market participants are evaluating the results of the ECB meeting. The regulator, as expected, kept the fundamental parameters of...

EUR/USD is in a bullish mood

Yesterday, the quotes grew by more than 80 pips. The USD is under pressure due to the weak inflation reports. Positions should be opened from...

Dragged down by marked divergence

A range of prominent ECB speakers today including Draghi in front of the EU parliament could set the scene for ECBs next draw and provide EUR with...


EUR/USD climbs to highs beyond 1.1350

The pair advances to daily highs near 1.1360 on Friday. The greenback trades on the defensive below the 97.00 handle. EMU's final CPI figures next on tap...

EUR/USD bearish, aims to 1.1186

EUR/USD bounced back to the November 2016 high and August 2018 low at 1.1300/01 but remains overall bearish and continues to target the 61.8% Fibonacci...

EUR/USD a tad firmer, regains 1.1400

The pair rebounds from 1.1380 and retakes the 1.1400 handle. The greenback recedes from tops and tests 96.25/20. German IFO, ECB meeting next of relevance...


EUR/USD tumbles to 2-month low

The shared currency comes under further selling pressure on Wednesday. Spot comes down and tests fresh lows in the boundaries of 1.1400. EMU, German...

EUR/USD now looks to 1.1853

EUR/USD has at last eroded overhead resistance offered by the 1.1745/50 area and attention is on the 1.1790 recent high. This is exposed and...

EUR/USD now eyes 1.1790 near term

We were of the view last Friday that the rally is running ahead of itself but added there is scope for EUR to test 1.1735 first before it should settle down...

  


Share: