The bid tone around EUR is gaining strength amid weak action in European stock futures, helping the EUR/USD pair gain ground above its 100-DMA located at 1.0949.
Eyes European stock markets ahead of EZ CPI release
The immediate focus is on whether the major European indices follow Asian equities lower or witness a technical recovery following the opening bell. Accordingly, the investors would adjust the positioning in the funding currency EUR.
The major event ahead is the Eurozone CPI release, which will set the tone for the next week’s ECB rate decision. The bank is widely expected to cut rates by another 10 bps and expand its QE program by EUR 10-30 billion per month.
EUR/USD Technical Levels
The spot currently trades around 1.0958. The immediate resistance is seen at 1.0976 (50-DMA + rising trend line support), above which the pair could target 1.10 handle. On the other hand, a failure to sustain above the immediate support at 1.0949 (100-DMA) could send prices back to daily low of 1.0908.