The EURUSD broke above the resistance turned support level of 1.0640 to climb higher toward the 1.07 round number resistance level.
However, as the DXY recovered in strength, the EURUSD reversed to retest the 1.0640 price area again.
Today, the EUR CPI Flash Estimate y/y and Core CPI Flash Estimate y/y are due to be released. While the CPI Flash Estimate is forecasted at 8.3% (Previous 8.6%), signaling a slight slowdown in inflation growth for the Eurozone, this would be insufficient for the ECB to divert from its plans for further rate hikes.
Recent comments from President Lagarde from the ECB have indicated that a decision to hike rates by 50bps in the March meeting is highly likely. However, beyond that, the ECB's decisions on interest rates would be data-dependent.
Therefore, the EURUSD could continue to trade within the range of 1.0640 and 1.07, especially if the EURUSD stays above the 1.0640 price level.
Alternatively, if the price breaks below the support level, the EURUSD could trade down to the 61.8% Fibonacci retracement level and the 1.06 price area.
Comment
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price broke the support level, analysis and trades would focus more on the down side