Thursday, 10 May 2018

EUR/USD On wait and see mode ahead of US CPI


The greenback has paused its recent rally ahead of the core U.S. Consumer Price Index (CPI) data today. Signs of above target numbers may push FOMC to take more aggressive approach on monetary policy.
US inflation is the key event for today and EUR/USD has turned on wait and see mode. The pair is trading undisturbed around 1.1880. On the four hour time frame the price is developing below its bearish moving averages and currently is trying to break to above the 20-day SMA. RSI and stochastic had retreated from their oversold areas and both are showing good upward strength although are yest below their mid-lines.
EUR/USD might generate a rebound, according to indicators on the same chart, but only if advancing above 1.1900. Then this could be considered as a corrective recovery with next targets 1.1950 and the psychological 1.1200 mark. On the other hand the pair
stands at risk for further declines with a break and close below the 1.1810 - 1.1790 area. 


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