EUR/USD Closes Below 20-EMA, Eyes on U.S CPI
For the first time since June 22, EUR/USD closed below 20-EMA entering the sideways trend. Yesterday the pair peeked to 1.1994 high, but as the U.S Index recovered with 92.50 high, the pair submitted to strong greenback and dipped to 1.1873 low, and closed at 1.1885. Today, the pair is trying to recover trading at 1.1900 intraday.
Just now, French CPI was released without any change at 0.5% as expected. So market will be awaiting U.S CPI inflation report along with Unemployment claims. In case CPI managed to increase from previous sessions at 0.1%, this could be considered a hawkish turn for the buck and will add more pressure on EUR/USD.
Technical overview EUR/USD:
Current price: 1.1906
Resistance levels: 1.1928 (10-EMA) , 1.2060*, 1.2140
Support levels: 1.1891* (20-EMA), 1.2824 , 1.1791
Comment: Yesterday’s break signals a near term downturn and taken in conjunction with Friday’s spike/double high, cautions for selloffs to test 1.1891* support for a larger top. A close under 1.1891* projects to 1.1791 and possibly lower. A climb over 1.20555 stops peaking forces. A close over 1.2060* is needed to rekindle bull forces for another run at 1.2140+.