After reaching an intraday high of 1.0777 on Thursday, the EURUSD pair gained ground and is currently trading in the 1.0760 price range ahead of the US start. Demand for US dollars was hampered by improving market sentiment and declining US Treasury rates. German inflation data that was less than predicted set up a momentary knee-jerk when the Harmonized Index of Consumer Prices (HICP) unexpectedly increased by 9.2% YoY in January, less than the 10% anticipated and slowing from the previous 9.6%.
A decrease in inflationary pressures is good news on the one hand, but it also allows the European Central Bank (ECB) to slow down the pace of tightening.
Francois Villeroy de Galhau the president of the Bank of France and a member of the European Central Bank (ECB), also stated in a press release that he believes he can eliminate an economic downturn in France. His statements gave the Euro some further strength. With no other pertinent data scheduled for today, the United States will release Initial Jobless Claims for the week ending February 3, which are expected to total 190K.
EURUSD Technical Analysis
The EURUSD pair is now trading below its Monday-achieved weekly high of 1.0798 and a few tick above an important Fibonacci mark, the 61.8% retracement of the 2022 annual decline. Technical indications have slowed down and risen slightly, but they are still insufficiently strong and remain at negative levels.
The lengthier moving averages are significantly below the present level, but the 20 Simple Moving Average (SMA) is moving downward over it at the same time.
Overall, the likelihood of a higher gain is still slim. The 4-hour chart presents a neutral perspective and also exhibits the bulls’ determination to reappear. While the price is now circling a flat 200 SMA, technical indicators are still indecisive about their midlines.
Meanwhile, the 20 SMA continues to trade beneath the current level, but it also can’t give any hints on where to go. If the pair continues its current rebound past the 1.0800 level, bulls could take a gamble.
