EURUSD resistance ahead of CPI
As we move into CPI day, the EURUSD has stalled below the 1.08 level for the last three days.
Last week, the rejection of the Monthly Pivot Point was a significant bull signal that led to the rally into 1.08
Looking at the three key moving averages (20, 50, 100), we see they are fanned bullish. The 20 SMA shows signs of rounding due to the recent lack of momentum. Nevertheless, the bullishness remains in the moving averages.
After the MA cross around December, the price has not significantly pulled back though. Pullbacks after a significant market shift are common.
With Copper rallying (usually a bullish economic indicator), CPI data is expected to be lower. This would, in turn, lead to a lower Dollar and potentially a rally into the EURUSD.
With everyone expecting lower CPI data, surprises in the actual release can lead to outsized price actions.
Last week, the rejection of the Monthly Pivot Point was a significant bull signal that led to the rally into 1.08
Looking at the three key moving averages (20, 50, 100), we see they are fanned bullish. The 20 SMA shows signs of rounding due to the recent lack of momentum. Nevertheless, the bullishness remains in the moving averages.
After the MA cross around December, the price has not significantly pulled back though. Pullbacks after a significant market shift are common.
With Copper rallying (usually a bullish economic indicator), CPI data is expected to be lower. This would, in turn, lead to a lower Dollar and potentially a rally into the EURUSD.
With everyone expecting lower CPI data, surprises in the actual release can lead to outsized price actions.
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