EUR/USD halts surge amid US inflation data
EUR/USD halts surge amid US inflation data
In first half of the previous trading session the Euro continued to rapidly advance against the Dollar and practically reached the 1.1850 mark. However, the subsequent release of the American inflation and retail sales data that matched with analysts’ expectations returned the pair back to the 55-hour SMA near the 1.1780 level. As this moving average is additionally backed up by a combination of the 38.2% Fibonacci retracement level and the weekly R2, there is a little chance that the pair will manage to break to the bottom without proper impulse. The same applies for opposite direction, which is secured by the 50% retracement level and the monthly R1. So, this trading session the pair is likely to spend moving horizontally between these barriers unless the US manufacturing and jobs data will cause some notable price movements.
In first half of the previous trading session the Euro continued to rapidly advance against the Dollar and practically reached the 1.1850 mark. However, the subsequent release of the American inflation and retail sales data that matched with analysts’ expectations returned the pair back to the 55-hour SMA near the 1.1780 level. As this moving average is additionally backed up by a combination of the 38.2% Fibonacci retracement level and the weekly R2, there is a little chance that the pair will manage to break to the bottom without proper impulse. The same applies for opposite direction, which is secured by the 50% retracement level and the monthly R1. So, this trading session the pair is likely to spend moving horizontally between these barriers unless the US manufacturing and jobs data will cause some notable price movements.
In line with expectations, the currency exchange rate failed to slip below combined support formed by the 38.2% Fibonacci retracement level and the weekly R2 as well as to climb above combined resistance set up by the 50% retracement level and the monthly R1. It seems that the pair will continue moving undecidedly due to additional pressure exercised by the rising 55-hour SMA from one side and the weekly R3 from the opposite side.
There is a good chance that the exchange rate will make a decisive breakout during one of today’s fundamental events, such as the US housing data release. In the meantime, there is a need to remember that traders’ outlook for the Euro remains predominantly bearish so as the aggregate market sentiment, which is 67% bearish.