EUR/USD Eases From Multi-Month High, Approaches 1.0800
The EUR/USD pair retreated slightly on Monday and traded within a narrow range while the dollar gained some momentum in a quiet holiday session as U.S. traders celebrate Martin Luther King Jr. Day.
At the time of writing, the EUR/USD pair is trading at the 1.0820 area, 0.13% below its opening price, having pulled back from a fresh nine-month high of 1.0874.
Investors face a busy week ahead. On Wednesday, the U.S. will report the Price Producer Index, which is expected to rise by 6.8% over the year to December vs a 7.4% rate in November, while core PPI inflation annual rate is seen at 5.9% vs 6.2% in November. At the same time, retail sales are expected to bounce in December, printing a 0.1% advance following a 0.6% decline in November. Also Wednesday, the Fed’s Beige book will give the markets a perspective of the U.S. economy.
On the European side, the highlight of the week will be the final estimations of the December Eurozone Harmonized Index of Consumer Prices (HICP) figures on Wednesday, with the headline inflation rate expected to be confirmed at 9.2% YoY and the core rate at 5.2%. The ZEW survey data from Germany, the EU, and German HIPC will be released on Tuesday.
From a technical perspective, the EUR/USD holds a short-term bullish outlook according to the daily chart. Although the price has pulled back from recent highs, it holds above its main moving averages and important support zones. Indicators, in the meantime, have turned lower but remain in positive territory.
The next support levels are seen at 1.0800, followed by the last sessions lows at the 1.0725 area, the 20-day SMA at 1.0665 and the 1.0600 psychological mark. On the other hand, immediate resistance is seen at the nine-month high of 1.0874, followed by the critical Fibonacci level at 1.0900.
At the time of writing, the EUR/USD pair is trading at the 1.0820 area, 0.13% below its opening price, having pulled back from a fresh nine-month high of 1.0874.
Investors face a busy week ahead. On Wednesday, the U.S. will report the Price Producer Index, which is expected to rise by 6.8% over the year to December vs a 7.4% rate in November, while core PPI inflation annual rate is seen at 5.9% vs 6.2% in November. At the same time, retail sales are expected to bounce in December, printing a 0.1% advance following a 0.6% decline in November. Also Wednesday, the Fed’s Beige book will give the markets a perspective of the U.S. economy.
On the European side, the highlight of the week will be the final estimations of the December Eurozone Harmonized Index of Consumer Prices (HICP) figures on Wednesday, with the headline inflation rate expected to be confirmed at 9.2% YoY and the core rate at 5.2%. The ZEW survey data from Germany, the EU, and German HIPC will be released on Tuesday.
From a technical perspective, the EUR/USD holds a short-term bullish outlook according to the daily chart. Although the price has pulled back from recent highs, it holds above its main moving averages and important support zones. Indicators, in the meantime, have turned lower but remain in positive territory.
The next support levels are seen at 1.0800, followed by the last sessions lows at the 1.0725 area, the 20-day SMA at 1.0665 and the 1.0600 psychological mark. On the other hand, immediate resistance is seen at the nine-month high of 1.0874, followed by the critical Fibonacci level at 1.0900.