EURUSD remains marginally above 1.0950.

In Friday’s trading session, EURUSD maintained within Thursday’s trading range of 1.0930-1.1000. The European Central Bank (ECB) proclaimed the end of the extended rate tightening regime. While stubbornly higher consumer price inflation in the United States provided a buffer on the downside.

Due to a prolonged weekend in the US economy surrounding Martin Luther King’s birthday. The pair remains listless inside Friday’s trading range on Monday.

Despite the fact that the major is trying to find action. The December US Producer Price Index (PPI) report was unexpectedly soft. Producers raised yearly prices of goods. And services at a slower rate of 1.0%, compared to the 1.3% predicted by investors. The core PPI, which excludes volatile food and oil prices, fell substantially to 1.8%, compared to the consensus of 1.9%.

Investors’ bets on the Fed cutting rates in March remain strong.

Bets on the Federal Reserve (Fed) cutting interest rates at its March monetary policy meeting remain bullish. Despite policymakers endorsing them at least through the first half of this year. Before entering the rate-cutting cycle, Fed policymakers need additional evidence. That price pressures are gradually decreasing toward the 2% target.

This week, market investors will be watching the monthly US Retail Sales report for December. With bated breath. Investors anticipate that consumer Spending increased at a faster rate of 0.4% in December, compared to 0.3% rise in November. Aside from that, the attention will be on the Fed’s Beige Book.

EURUSD Technical Analysis

On an hourly basis, EURUSD trades in an Ascending Triangle chart pattern, indicating a substantial drop in volatility. The major currency pair’s upside is limited around the psychological figure of 1.1000, while an upward-sloping trendline drawn from the January 5 low of 1.0877 is lending support to the Euro bulls.

The 14-period Relative Strength Index (RSI) oscillates between 40.00 and 60.00, indicating a consolidation ahead.

The main currency’s upward trend could resume if it can break above the January 11 high of 1.1003, allowing it to reclaim the five-month high of 1.1120. A A breach of the latter would open the way to the upside towards the 19 July 2023 low of 1.1174.

On the other hand, a sell-off is possible if the asset falls below the January 9 low of 1.0910. This might lead to a decline towards the 22 November 2023 low of 1.0825 and the 5 November 2023 high of 1.0756.