The EUR/USD pair exhibited a bearish tone yesterday, breaching support levels before witnessing a marginal bounce back today. Investors’ eyes are keenly set on the upcoming US inflation data, poised to dictate the short-term market sentiment.
Key Points
- EUR/USD trended bearishly yesterday, struggling to stay above the pivot point.
- Upcoming US inflation data for January could significantly influence the pair’s direction.
- Short-term trading levels to watch: Pivot at 1.07778 and support at 1.07498.
EUR/USD Daily Price Analysis – 13/02/2024
The EUR/USD pair experienced selling pressure yesterday, continuing a downtrend to close at 1.07722. This decline also continued into the early hours of this morning.
Currently, there’s a slight shift in momentum, with the pair trading at 1.0777, up 0.06%. EUR/USD shows signs of stability and minor positive movements as the market continues its struggle to close above the 200 EMA and the daily pivot point. This change is a crucial aspect to monitor for short-term traders, indicating a potential shift in market sentiment.
Today, all eyes are on the CPI data, with anticipation of a decrease in the inflation rate.
Key Economic Data and News to Be Released Today
High-impact events, such as the US Inflation Rate Year-over-Year and Consumer Price Index (CPI) data releases, are expected today. These economic indicators could significantly influence the pair’s movement. With forecasts pointing to a decrease in inflation, a lower-than-expected figure could weaken the dollar, offering the Euro a chance to reclaim lost ground. Conversely, any surprise on the upside could see the EUR/USD pair testing its recent lows once more as traders adjust their positions in anticipation of continued monetary policy tightening by the Fed.
EUR/USD Technical Analysis – 13/02/2024
Yesterday’s trading session saw the EUR/USD pair caught in the grip of bears as it spiraled below the pivotal 1.07778 mark. Despite struggling with the resistance at 1.07999, the pair’s failure to breach this ceiling sharply descended toward the S1 support level at 1.07660. The lack of bullish momentum kept the currency pair well beneath the Exponential Moving Average, underscoring the dominance of sellers throughout the day.
The early hours of today continued to paint a bearish picture, with the pair dipping below the 1.07600 key level and teasing the S1 at 1.07498. However, a tepid bounce saw the EUR/USD claw back above the key level, hinting at an underlying battle between retreating bears and advancing bulls.
Now, the price has closed above the 200 EM in the 15-minute timeframe, leaving us to wonder if this recovery might be short-lived or become the beginning of a bullish resurgence. Yet, a substantial move is likely to occur following the release of the CPI report today at 13:30 GMT.
EUR/USD Fibonacci Key Price Levels 13/02/2024
Traders should keep a close eye on the following key price levels for the day:
| Support | Resistance |
| 1.07530 | 1.07920 |
| 1.07590 | 1.07850 |
| 1.07660 | 1.07790 |
Risk Disclosure: The information provided in this article is not intended to give financial advice, recommend investments, guarantee profits, or shield you from losses. Our content is only for informational purposes and to help you understand the risks and complexity of these markets by providing objective analysis. Before trading, carefully consider your experience, financial goals, and risk tolerance. Trading involves significant potential for financial loss and isn't suitable for everyone.
