FXStreet (Mumbai) – The bid tone around the EUR/USD pair is struggling to gather pace even though the data released just now showed the inflation ticked higher in January.
Attempting to break above hourly 50-MA
The spot is in a process of recovering above its hourly 50-MA located at 1.0906 levels. The data released today brought good news on inflation front. Consumer prices rose an annual 0.4%, after 0.2% last month. Core CPI also rose to 1% as expected.
However, the data is being read with skepticism as the effects from a drop in oil and food prices early last year could have finally faded from the annualized CPI figure, giving it a temporary boost. Hence, the gains in the pair are hard to come.
The investors now await the US preliminary Q4 GDP release due later today.
EUR/USD Technical Levels
The immediate support is seen at 1.0890 (38.2% of 1.1495-1.0517), under which the spot could drop to 1.0868 (5-DMA). A break lower would expose to 1.0841 (50-DMA). On the other hand, a break above 1.0940 (61.8% of Mar-Aug rally) would open doors for a rally to 1.0979 (100-DMA), which if taken out may see the pair test offers at 1.10 levels.
(Market News Provided by FXstreet)