EUR/USD: 1.1800 – a whisker away, EZ CPI eyed
- DXY printing fresh daily lows.
- Surpasses hourly 100 & 200-MA resistance.
- Eurozone final CPI – Up next.
The Asian recovery in the EUR/USD pair gathers steam in the European session, with the rates now breaking through the hourly 100 and 200-MA resistances located near 1.1780 region in a bid to regain 1.18 handle.
EUR/USD: US political worries weigh on the USD
The offered tone around the US dollar keeps growing bigger, pushing the spot closer towards the 1.1800 mark, as markets continue to liquidate the USD longs amid fresh concerns over the US government shutdown ahead of the Dec 22nd deadline.
The Euro stands resilient to the risk-on rally in the European equities and higher Treasury yields that reflects risk-on market profile, as the USD price-action continues to remain the main market driver amid a lack of fresh catalysts.
Hence, attention now turns towards the Eurozone final CPI for fresh impetus on the major, with the 19-nation bloc’s consumer prices gauge expected to confirm a 1.5% reading in the reported month.
Meanwhile, it’s worth noting that the renewed optimism around the EUR is mainly evidenced by increased investors’ confidence, as seen in the latest US CFTC report, which showed that the EUR net longs hit a decade highs last week.
EUR/USD Technical Outlook
Jim Langlands at FX Charts, explains: “For now I prefer to remain short Euro although the rising trend support at 1.1735 is close by and may contain the downside. A break, which the daily charts suggest is possible, would allow a run back towards 1.1705/15, below which could see an acceleration towards 1.1650/80. On the topside, 1.1800 will continue to act as resistance. For Monday, look for a range of 1.1780/1.1680 with the EU CPI likely to be the key driver.”