EURUSD wait and see approach before crucial inflation data.
Before Wall Street opens, the EURUSD pair trades calmly in the 1.0940 price range, around its daily opening. Confined to familiar levels since last Wednesday, the couple lacks direction. The US job data from the previous week, which were largely better than expected, piqued the interest of speculation. Despite the fact that the figures raised questions about when the Federal Reserve (Fed) may really implement the first rate drop. Investors ultimately kept their bets on a March cut, which limited US Dollar.
This week will see a lot of attention focused on inflation. As the US releases the Consumer Price Index for December. Which is expected to rise from the previous 3.1% to 3.2% YoY. However, it is anticipated that the core annual reading would be 3.8%, down from 4% in November.
During European trade hours, there has been a lot going on in the macroeconomic calendar. Germany released its November Trade Balance, which showed a seasonally adjusted surplus of €20.4 billion, above forecasts. Furthermore, in the same month, Factory Orders grew by a meek 0.3%, less than the 1.0% that market participants had predicted. Retail sales decreased 0.3% month over month, and the Eurozone released its January Sentix Investor Confidence report, which came in at -15.8. While some Fed speakers will be on the wires, the American session will not bring any pertinent data.
EURUSD Technical Analysis
The EURUSD pair’s daily chart indicates that it has been essentially unchanged over the past four days. Although it still has a bullish slope, the 20 Simple Moving Average (SMA) serves as dynamic resistance at 1.0970. Technical indicators, on the other hand, head nowhere near their midlines, indicating a lack of directional interest, while the longer moving averages stay aimless, well below the present level.
The 4-hour chart indicates that the EURUSD pair is neutral in the near run. The pair’s trading range is centered around the flat 20 SMA, with intraday support coming from a directionless 200 SMA at 1.0920.
Lastly, in keeping with the lack of a distinct directional interest, technical indicators are flat around their midlines.
