EUR/USD Recovers Sharply To Near 1.0680 As US Dollar Index Drops, German Inflation Eyed

20 euro bill on white printer paper

Photo by Ibrahim Boran on Unsplash

The EUR/USD pair has sensed buying interest after dropping to near 1.0650 in the Asian session. The major currency pair has recovered as the rebound move in the US Dollar Index (DXY) has faded. Broadly, the major is displaying a sideways auction profile as investors are awaiting the release of the Eurozone Harmonized Index of Consumer Prices (HICP) data for fresh impetus.

The US Dollar Index has sensed selling pressure after failing to extend its recovery above the immediate resistance of 103.50. The USD Index is declining sharply and is likely to re-test its critical support at 103.00. Meanwhile, S&P500 futures have recovered sharply after kicking off the session on a weak note. A responsive buying action near lower levels indicates the existence of value-buying at lower levels. This also indicates a sheer recovery in the risk appetite of the market participants.

According to the consensus, the German HICP (Dec) will escalate to 11.8% vs. the former release of 11.3%. It seems that the inflationary pressures in Germany have been propelled by rising wage rates. European Central Bank (ECB) President Christine Lagarde cited higher wage rates as responsible for more juice to already firmer inflation.  ECB President cited that the central bank must prevent this from adding to already high inflation, as reported by Reuters.

On the United States front, the release of the Federal Open Market Committee (FOMC) will remain in focus. Investors will keep an eye on the policy outlook for CY2023 and current economic prospects for taking informed decisions.

 

EUR/USD

OVERVIEW
Today last price 1.0672
Today Daily Change 0.0006
Today Daily Change % 0.06
Today daily open 1.0666

 

TRENDS
Daily SMA20 1.0604
Daily SMA50 1.0363
Daily SMA100 1.0131
Daily SMA200 1.0324

 

LEVELS
Previous Daily High 1.071
Previous Daily Low 1.0651
Previous Weekly High 1.0713
Previous Weekly Low 1.0607
Previous Monthly High 1.0736
Previous Monthly Low 1.0393
Daily Fibonacci 38.2% 1.0673
Daily Fibonacci 61.8% 1.0687
Daily Pivot Point S1 1.0641
Daily Pivot Point S2 1.0616
Daily Pivot Point S3 1.0582
Daily Pivot Point R1 1.07
Daily Pivot Point R2 1.0734
Daily Pivot Point R3 1.0759

More By This Author:

GBP/JPY Price Analysis: Falls To 4-Month Lows Around 157.40s
EUR/USD Struggles Around The Two-Week High Of 1.0700, Tumbles To 1.0650
AUD/USD Rises To Test Last Week's Highs Near 0.6820

Disclaimer: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only ...

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