EURUSD Analysis
| Performance after Monday | |||||
| Period | Pct | Chg | Momentum | ||
| Monday | -0.65% | -69.2 Pips |  |
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| Week to-date | -0.67% | -71.5 Pips | |
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| November | -2.12% | -230.3 Pips |  |
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Upcoming key events (London Time)
Wed 01:30 PM USD CPI Inflation Rate (12-mth)
What happened lately
There are no major economic news currently affecting the European or US markets. The anticipated noteworthy event is the release of the US Consumer Price Index (CPI) Inflation Rate on Wednesday at 1:30 PM, which is classified as a high-impact event. This piece of economic data is significant as it provides insights into the inflationary pressures in the United States, which can influence the Federal Reserve’s monetary policy decisions. The market participants are likely awaiting this data to gauge the health and direction of the US economy.
In the foreign exchange market, the EURUSD pair exhibited a downward trend, dropping by 0.65% to settle at 1.06558 on Monday. The lack of major economic reports implies that the movement could be attributed to market positioning or expectations surrounding the upcoming CPI data, which may weigh heavily on traders’ sentiment and trading strategies. Investors might be hedging their positions or adjusting portfolios in anticipation of potential changes in interest rate outlooks following the release of inflation data.
The imminent release from the US on inflation could have a substantial impact on the EURUSD pair. If the CPI data indicates higher-than-expected inflation, it may prompt expectations for more aggressive monetary policy tightening by the Federal Reserve, potentially strengthening the USD against the EUR. Conversely, if the inflation rate is lower, the USD might weaken due to decreased pressure on the Fed for immediate rate hikes, favoring the EUR. Thus, market participants will likely closely monitor this data, as it could set the tone for the currency pair’s movement in the coming days. The outcome will likely impact interest rate differentials, influencing the flows between these currencies, and lead to volatility in the EURUSD exchange rate.
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What can we expect from EURUSD today?
EURUSD on Monday dropped -0.65% to 1.06558. Price is below 9-Day EMA while Stochastic is falling.
Updated daily direction for EURUSD looks bearish as the pair posted lower in Monday trading session.
Looking ahead for the day, immediate support level is at S1 1.06134 with break below could see further selling pressure towards S2 at 1.0571. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 1.07280 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 1.06283 would indicate selling pressure.
For the week to-date, take note that EURUSD is bearish as the pair posted lower by -0.67%.
Key levels to watch out:
| R3 | 1.08128 |
| R2 | 1.07704 |
| R1 | 1.07131 |
| Daily Pivot | 1.06707 |
| S1 | 1.06134 |
| S2 | 1.0571 |
| S3 | 1.05137 |
#EURUSD Trending on Twitter
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