After failing to overcome the significant resistance level of 1.0630, the EUR/USD pair came under selling pressure.
The major currency pair has retreated to be close to the 1.0600 round-level support. The US Dollar index (DXY) has nearly reached 104.00 after fully recovering all of its losses.
Additionally, the rate on US 10-year Treasury notes has risen to 3.71%. Investors in the Eurozone are currently anticipating the Friday announcement of the Harmonized Index of Consumer Prices (HICP).
According to the consensus, the headline HICP will probably fall from the previously released 10.1% to 9.7%.
This week, lowering energy prices drove a sharp decline in the German HICP to 9.7%.
The European Central Bank (ECB) might be forced to cut down the pace of its policy tightening if the price index declines, as the journey to inflation of 2% is far from complete.
Daily SMA20 |
1.0612 |
Daily SMA50 |
1.0385 |
Daily SMA100 |
1.0139 |
Daily SMA200 |
1.0318 |