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


Today last price1.08
Today Daily Change-0.0009
Today Daily Change %-0.08
Today daily open1.0809
Daily SMA201.0789
Daily SMA501.0875
Daily SMA1001.0822
Daily SMA2001.0829
Previous Daily High1.0856
Previous Daily Low1.0796
Previous Weekly High1.0888
Previous Weekly Low1.0762
Previous Monthly High1.0898
Previous Monthly Low1.0695
Daily Fibonacci 38.2%1.0819
Daily Fibonacci 61.8%1.0833
Daily Pivot Point S11.0784
Daily Pivot Point S21.076
Daily Pivot Point S31.0724
Daily Pivot Point R11.0844
Daily Pivot Point R21.088
Daily Pivot Point R31.0905

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