Eurusd remains stable amid lack of significant economic updates

EURUSD Analysis

Performance after Wednesday
Period	Pct	Chg	Momentum
Wednesday	-0.06%	-6.2 Pips
Week to-date	-0.04%	-4.3 Pips
April	1.24%	134.6 Pips

Upcoming key events (London Time)

Thu 01:30 PM USD CPI Inflation Rate (12-mth)
Fri 01:30 PM USD PPI excluding Food and Energy sectors (12-mth)

What happened lately

The economic landscape shows no significant updates impacting the Euro or the US Dollar directly at the moment. Over the past day, the EURUSD currency pair experienced a slight decline of 0.06%, closing at 1.09503. This suggests that the currency pair remains in a period of consolidation, reflecting stability within a specific range given the absence of strong economic indicators on either side.

Looking forward, the upcoming economic data releases from the United States have the potential to significantly influence market movements. On Thursday, traders are awaiting the publication of the Consumer Price Index (CPI) Inflation Rate, a critical measure of inflation assessing the change in the price level of a basket of goods and services consumed by households over the past 12 months. This is followed by the Producer Price Index (PPI) excluding Food and Energy sectors on Friday, providing further insights into pricing power at the production level. Both pieces of economic data hold considerable impact as they offer guidance on the Federal Reserve’s future monetary policy adjustments, especially in terms of interest rates, which can influence USD strength.

In terms of the EURUSD pair, the incoming US economic data could either exacerbate or alleviate the current consolidation phase. Should the inflation measures come in higher than expected, it might lead to speculation about an accelerated pace of interest rate hikes by the Federal Reserve, potentially boosting the USD and pressuring the EURUSD lower. Conversely, a lower-than-expected inflation reading could ease such anticipation, supporting a potential rise in the EURUSD or at least maintaining its consolidation around the current levels. As the market awaits these high-impact economic releases, traders are likely to hedge positions or remain cautious, further perpetuating the current range-bound movement in EURUSD ahead of any stronger directional cues. Thus, traders and investors should closely monitor the data and be prepared for potential volatility in the pair following these announcements.

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What can we expect from EURUSD today?

EURUSD on Wednesday dropped -0.06% to 1.09503. Price is above 9-Day EMA while Stochastic is falling.

Updated daily direction for EURUSD looks mixed as the pair is likely to consolidate above 1.08771 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 1.10952 or trades above daily pivot 1.09862. Break above could target R1 at 1.10593. While to the downside, we are looking at 1.08771 (S1) and daily low of 1.09130 as support levels. EURUSD need to break on either side to indicate a short-term bias. A close below 1.09130 would indicate selling pressure.

For the week to-date, take note that EURUSD is mixed as compared to the prior week.

Key levels to watch out:

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