• U.S. CPI was released at .2% (YoY)
• The EUR/USD remains supported over 1.0639
• Range resistance is found at 1.0731
The EURUSD has been trading at support this morning, but despite better than expected CPI data out of the U.S. Expectations for this morning’s event, were set at .1% (YoY) and were released at .2%. The US Dollar rallied against most major pairs, but the EUR/USD has not breached the S4 which is found today at a price of 1.0639. Even though prices have initially failed to breakout lower, traders looking for a resumption of the EUR/USD’s downtrend below the S4 can begin targeting a 1x extensions of today’s 46 pip range towards a price of 1.0593.
Currently the EUR/USD remains supported above the S3 found at 1.0662. If prices begin to bounce, traders may begin looking for a retracement towards values of resistance. This includes the R3 range resistance which resides at 1.0708. If prices remain between these points, traders may select to continue to trade the current range bound market conditions. Alternatively, in the event of a price advance through the R3 , traders will watch for breakouts above 1.0731. A price reversal to this point would be significant as it would be the first breakout in the last 3 trading sessions. A 1x extension of today’s range over the R4 places EUR/USD targets at 1.0777.