EURUSD advancing towards 1.0800 as the US CPI data comes into focus
The EURUSD pares losses as the US Dollar retreats ahead of the US CPI announcement. And the Fed decision, which will determine the Dollar’s near-term path.
While trading below 1.0815, the EURUSD is still in a bearish trend.
During European morning trade, the EURUSD is moving with a mildly optimistic tone. Reaching intra-day highs above 1.0800. As the Dollar loses ground ahead of the release of US CPI numbers.
The US CPI and the Fed will determine the direction of the Dollar.
Later today, the US Bureau of Labor Statistics is scheduled to publish. That US inflation fell to 3.0% in the year to November, while the core CPI stayed stable at 4%.
These Today’s numbers will be scrutinized in great detail. With all eyes on the Federal Reserve’s monetary policy decision on Wednesday. The key driver of FX markets is investor speculation about the timing of a Fed shift. And any surprise in inflation trends might have a significant influence on US Dollar crosses.
EURUSD Technical Outlook
The EURUSD pair’s corrective retreat from late November highs has found support at 1.0730, the 50% Fibonacci retracement of the October-November advance.
The short-term bias is still negative, with 1.0815, where prior highs meet the 4h 50 SMA, likely to provide major resistance. 1.0880 will be the next price to appear up here. Supports are at 1.0730 and early November lows are at 1.0660.
