EUR/USD bounced back from its weekly lows, boosted by better-than-expected inflation data from the Eurozone. The European Harmonized Index of Consumer Prices (HICP) exceeded forecasts, rising by 2.6% year-on-year, while Core HICP increased by 3.1%, topping expectations but slightly lower than January’s figures.
This positive news led to an increase in yields both in Europe and the US, providing support for the euro. Investors are anticipating rate cuts in 2024, with the first expected in June. The European Central Bank (ECB) is projected to gradually reduce rates, especially with potential wage increases on the horizon.
ECB’s Robert Holzmann emphasized the need to monitor inflation risks carefully, indicating a cautious approach to rate decisions. Meanwhile, Richmond Fed President Thomas Barkin adopted a hawkish stance, expressing reluctance to ease policy unless economic indicators justify it.
Despite a mixed picture in manufacturing activity, with S&P Global reporting expansion while ISM indicated contraction, the EUR/USD remained resilient. Technical analysis suggests a bullish outlook, with the Relative Strength Index (RSI) showing potential for further upside. If the pair surpasses the 200-day moving average (DMA) at 1.0828, it could continue its upward trajectory towards the 50-DMA at 1.0871.
EUR/USD Price Action – Daily Chart
EUR/USD
OVERVIEW | |
---|---|
Today last price | 1.08 |
Today Daily Change | -0.0009 |
Today Daily Change % | -0.08 |
Today daily open | 1.0809 |
TRENDS | |
---|---|
Daily SMA20 | 1.0789 |
Daily SMA50 | 1.0875 |
Daily SMA100 | 1.0822 |
Daily SMA200 | 1.0829 |
LEVELS | |
---|---|
Previous Daily High | 1.0856 |
Previous Daily Low | 1.0796 |
Previous Weekly High | 1.0888 |
Previous Weekly Low | 1.0762 |
Previous Monthly High | 1.0898 |
Previous Monthly Low | 1.0695 |
Daily Fibonacci 38.2% | 1.0819 |
Daily Fibonacci 61.8% | 1.0833 |
Daily Pivot Point S1 | 1.0784 |
Daily Pivot Point S2 | 1.076 |
Daily Pivot Point S3 | 1.0724 |
Daily Pivot Point R1 | 1.0844 |
Daily Pivot Point R2 | 1.088 |
Daily Pivot Point R3 | 1.0905 |