EURUSD Technical Outlook (Daily)
EURUSD: Trading was erratic around the single currency Tuesday confined to a 50 pips’ range. The Buck closed lower across the board, as an uptick in US inflation was not enough to dispel doubts over the next Fed’s rate hike.
US headline inflation rose from 0.9% Y-Y to 1.1% Y-Y in April, beating expectations, the core reading remained steady at 2.1%. On a monthly basis, it came in at 0.4% Vs prior 0.1%.
The USD initially rallied on the news, and quickly faded.
US manufacturing rose in the same month for the 1st time in 3 months, with industrial production up by 0.7%.
EURUSD fell to 1.1301 reversed and printed a daily high of 1.1348 finishing flat on the day
The 4 hours suggests that the risk remains towards the Southside, given that the intra-day spike, stalled around the 38.2% Fibo retracement of the latest daily Bearish run, and that the price was unable to settle above a Bearish 20-Day SMA although the technical indicators lack enough strength to confirm some directional move.
The FOMC Mins will be released Wednesday shedding some light on the US future.
A long as the pair stays above 1.1280, the Southward risk will be limited.
Support marks: 1.1280 1.1240 1.1200
Resistance marks: 1.1340 1.1370 1.1410
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