EURUSD Analysis
| Performance after Tuesday | |||||
| Period | Pct | Chg | Momentum | ||
| Tuesday | 0.54% | 55.5 Pips |  |
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| Week to-date | 0.47% | 48.9 Pips |  |
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| February | -0.35% | -36.8 Pips |  |
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Upcoming key events (London Time)
Wed 01:30 PM USD CPI Inflation Rate (12-mth) Wed 01:30 PM USD CPI Inflation Rate excluding Food and Energy sectors (12-mth) Wed 03:00 PM USD Federal Reserve Chair Jerome Powell testifies Thu 01:30 PM USD PPI excluding Food and Energy sectors (12-mth)
What happened lately
In the Euro Area, the sentix Economic Index for February exhibited a notable improvement, rising to -12.7 points compared to -17.7 points in January. This increase suggests growing optimism among investors regarding the economic outlook in the region. The improvement in sentiment could be attributed to several factors, such as better-than-expected economic data, easing energy prices, or favorable policy announcements. A less negative sentiment often indicates a more stable or recovering economic environment, potentially supporting increased investment and consumption activities within the Euro Area.
The United States is on the verge of several high-impact economic announcements, including the Consumer Price Index (CPI) inflation rate for the past 12 months, which will be released on Wednesday at 01:30 PM. Alongside, the CPI inflation rate excluding food and energy, which often provides a clearer picture of the fundamental inflationary pressures, will also be released. Additionally, on the same day, Federal Reserve Chair Jerome Powell is set to testify, an event closely watched by traders for any indications of future monetary policy decisions. On Thursday, at 01:30 PM, the Producer Price Index (PPI) excluding food and energy will be disclosed. These releases and testimonies will be crucial in determining the future trajectory of monetary policy in the U.S., especially regarding interest rate decisions.
The improvement in the sentix Economic Index in the Euro Area is likely to have a positive impact on the EURUSD exchange rate, as it reflects increasing investor confidence in the European economy. The uptick in EURUSD by 0.54% to 1.03605 on Tuesday could be an early indication of market optimism surrounding the Euro. However, the upcoming U.S. economic data and Federal Reserve announcements will also play a significant role in influencing EURUSD movements. If U.S. inflation data is higher than expected, leading to potential hawkish monetary policy actions, it may counteract the Euro’s strength. Conversely, if inflation data aligns with or is below expectations, it might bolster the Euro against the U.S. dollar, further supporting the EURUSD upward trend. The interaction between these economic reports and market expectations will define the short-term and medium-term direction of the EURUSD pair.
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What can we expect from EURUSD today?
EURUSD on Tuesday rose 0.54% to 1.03605. Price is above 9-Day EMA while Stochastic is falling.
Updated daily direction for EURUSD looks bullish as the pair ended higher after Tuesday trading session.
Looking ahead for the day, immediate upside resistance level is R1 at 1.03974 with break above could target R2 at 1.04344 or figure level area. While towards the downside, we are looking at daily low of 1.02917 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.03815 may suggest continuation after recent positive movement.
For the week to-date, take note that EURUSD is mixed as compared to the prior week.
Key levels to watch out:
| R3 | 1.04872 |
| R2 | 1.04344 |
| R1 | 1.03974 |
| Daily Pivot | 1.03446 |
| S1 | 1.03076 |
| S2 | 1.02548 |
| S3 | 1.02178 |
#EURUSD Trending on Twitter
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