The EURUSD unit maintains its lateral integration pricing movement over the 2nd consecutive day on Tuesday. Remaining well inside the reach of the monthly bottom, which was reached this past week near the 1.0725 to1.0720 zone. The spot rates are now trading at 1.0765-1.0779, largely steady for the duration of the session. while investors eagerly anticipate the arrival of US CPI numbers for a new push.

Key points & Considerations

For another day in succession, the EURUSD has been restricted to a small pricing range.

Before putting new directional stakes, consider the technical backdrop.

Investors are currently looking to the US Inflation for new momentum in the face of softer US Fed &ECB prices.

Lower odds on the Fed cutting interest rates for the inaugural time during March of 2024. Which act as a boost for the dollar in the run-up to the major event threat. The pair, on the opposite conjunction, is under pressure from anticipation that Euro bank would begin reducing rates at the start of 2024.  Following a larger-than-expected drop in inflation in the Eurozone this past month. As a result, investors are hesitant to place strong directed wagers on the EURUSD set, resulting in moderate within a range pricing activity.

ZEW Macroeconomic Factors in Focus

Investors will be watching the ZEW Economic Development indices for German & the rest of the Eurozone today

Current Germany’s and European economic indices have provided divergent signals. According to poll statistics, the macroeconomic climate is growing. Non-poll info, on the other hand, indicated an improving situation.

poor-than-estimated Economic Confidence data might dampen buying interest in the EURUSD. Although the data might not be having an impact on the the European Banking Authority.  They may increase recession fears. Notably, worsening macroeconomic circumstances may cause the euro zone central bank to rethink its schedule of rate decreases.

Technical Perspective & Analysis

Case 1

Technically, the spot market prices exhibited resistance beneath the fifty percent Fibonacci regression point of the Oct to Nov surge on Friday, and have thus far succeeded to hold onto the 100- (D-SMA) at a daily ending footing. This suggests waiting for a persistent breach and acceptability under the 1.0725 level. Prior to preparing for a continuation of the current downturn after the several month top reached in Nov. The EURUSD currency duo may possibly go under 1.0700 mark to challenge the 61.8 percent Fibonacci stage, which is located between 1.0670 & 1.0665 levels.

Case 2

On the other hand, the 1.0800 rounded figure, which corresponds to the 38.2 percent Fibonaaci. the breaking point. Currently appears to operate to be an instant solid hurdle front of the 200 (D-SMA), which is located near the 1.0825 zone. Additional follow-up purchasing might push the duo back nearer to the 1.0900 level. The bullish’ impetus might be stretched higher towards the following key obstacle at the 1.0940 lateral region. Beyond where they might initiate another effort to break over the 1.1000 psychological threshold.

Technical Indicators – Daily