EUR/USD price technical analysis update
Markets received further positive signs about the euro-zone economies. Spain and Germany saw a drop in the number of the jobless, PMIs continued looking good and even inflation was ok, but EUR/USD confirms a ceiling near 1.2080-90 region- Additional details from the latest US jobs report revealed that unemployment rate held steady at a 17-year low level of 4.1%, which along with a pick-up wages growth revived hopes for a March Fed rate hike more. The same was being showcased by a sharp rebound in the US Treasury bond yields and eventually helped the US Dollar recovered- will it go again below 1.20 or break up the last topping?
According the official report published on Friday inflation in the Euro area fell matching with the forecasts.
The inflation rate was in line with the forecasts of analysts, but it remains below the ECB’s target of 2%
Published Eurostat data also showed that consumer prices in December increased by 1.4% YoY, compared to 1.5% gain in November last year.
Eurozone producer price index rose 0.6% in November against growth forecasts of 0.3%
Core inflation showed an increase of 0.9% on an annualized basis, remaining unchanged from the previous month
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| EUR USD TECHNICAL |
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| EUR USD ANALYSIS |
EUR/USD TECHNICAL VIEW
EUR/USD rose almost to 1.21 last week but failed to take out 1.2091 resistance and retreated, break up again on daily basis 1.2091 price level will confirm medium term rally resumption and target next key Fibonacci level at 1.2360/2560.
However, sustained price below will extend the consolidation pattern from 1.2091 with another decline through 1.1760 support.
It’s still early to decide whether price action form 1.0339 is developing into a corrective or impulsive pattern, In the bigger picture this is still seen as a corrective move for the moment.
in case of another rally, we’d expect 38.2% retracement of 1.6039 to 1.0339 at 1.2560 to limit upside and or even to yellow strip at 1.2830 and bring reversal.
Look EUR USD PRICE BELT- same in the past, if this is the case we should expect for more higher area prices, but it should bring before small correction to 1.1730-1.1820 for my opinion
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| EUR USD FORECAST |
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