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 clings to recovery gains

EZ final CPI matches preliminary estimates but does little to boost EUR. USD retreats from highs on US-China trade-related headlines and remains supportive...

EUR/USD still seen corrective

No change. EUR/USD's upside correction is approaching the 1.1855 Fibonacci retracement. A close back below the 20 day ma at 1.1725 should be enough...

EUR/USD tumbles to lows near 1.1760

The pair prints fresh daily lows in the 1.1760 region. The greenback picks up pace and pushed DXY to 93.60/65. German Industrial Production, trade surplus...

EUR/USD seen below 1.20 for longer

Near term, we expect new 2018 lows as notably the US favourable cyclical position continues to manifest itself... Risks to our forecast profile are now...

Euro gripped by Italexit fears

The past few days have not been kind to the Euro, which has tumbled to levels not seen since July 2017 amid the brewing political chaos in Italy.

Pair risks further decline near term

Aila Mihr, Analyst at Danske Bank, does not rule out further weakness around the single currency in the near term. Muted moves in majors yesterday...

EUR/USD regains the 1.1760 region

The pair trims losses and rebounds to the 1.1760 region. After recording fresh YTD tops, the greenback eases some ground. Fedspeak, FOMC, ECB minutes...

EUR/USD shifted to neutral from bearish

We expected a higher EUR last Friday but were of the view that a clear break of the strong 1.1960 level seems unlikely. EUR managed to crack...

EUR/USD eyes 1.1900 on weak US PPI

The pair gains extra ground on lower-than-expected US PPI. The greenback drops to lows in sub-93.00 levels. US Producer Prices surprised to the downside...