EUR/USD Remains Offered Above 1.0700 Ahead Of Data

After two consecutive daily advances – including a brief test of the area beyond 1.0800 the figure on Tuesday – EUR/USD now faces some loss of momentum and recedes to the 1.0700 zone, where decent contention seems to have turned up.

For now, the dollar has regained some composure following the heightened volatility in the wake of the publication of the US inflation figures on Tuesday. Furthermore, the pair keeps the multi-session consolidative theme in the lower end of the recent range unchanged as investors continue to closely monitor messages from both the ECB and the Fed policymakers.

In the domestic calendar, EMU Balance of Trade figures are due seconded by Industrial Production and the speech by Chairwoman C. Lagarde at the European Parliament. Busy day across the pond, as Retail Sales, MBA Mortgage Applications, Industrial Production, the NAHB Index, Business Inventories, the NY Empire State Index, and TIC Flows are all scheduled for later in the NA session.

Despite the recent rebound to the 1.0800 region, EUR/USD remains within the multi-day consolidative phase and is decently supported near 1.0650 for the time being. In the meantime, price action around the European currency should continue to closely follow dollar dynamics and the potential next moves from the ECB after the bank has already anticipated another 50 bps rate raise at the March event.

Recession concerns now appear to have dwindled back to the euro area, which at the same time remains an important driver sustaining the ongoing recovery in the single currency and the hawkish narrative from the ECB.

Eminent issues on the back boiler: Continuation of the ECB hiking cycle amidst dwindling bets for a recession in the region and still elevated inflation. Impact of the Russia-Ukraine war on the region’s growth prospects and inflation outlook. Risks of inflation becoming entrenched.

So far, the pair is retreating 0.09% at 1.0727, and a drop below 1.0655 (weekly low February 13) would target 1.0481 (2023 quiet January 6) en route to 1.0324 (200-day SMA). On the flip side, the next-up barrier aligns at 1.0804 (weekly high February 14), seconded by 1.1032 (2023 high February 2), and finally 1.1100 (ground level).

This Post Has 5 Comments

  1. List of Backlinks

    Hello there! Do you know if they make any plugins to assist with SEO?

    I’m trying to get my website to rank for some targeted keywords but I’m not seeing
    very good success. If you know of any please share.
    Thanks! I saw similar text here: Scrapebox List

  2. Auto Approve List

    Hi there! Do you know if they make any plugins to help with Search Engine Optimization? I’m trying to get my site to rank for
    some targeted keywords but I’m not seeing very good gains.
    If you know of any please share. Kudos! You can read similar art here: Auto Approve List

  3. sklep online

    Wow, awesome blog layout! How lengthy have you ever been blogging for?
    you make blogging glance easy. The whole look of your website
    is excellent, let alone the content! You can see similar here sklep online

Leave a Reply

Important Link

Fund Your Deriv Account
Withdraw Funds to Your Local Currency
VIP Trading Signals
Learn To Trade

Contact Us

Follow Us


Forex, Crypto, Options, and Binary Options have both large potential rewards and large potential risks. Therefore, before investing or trading any of the assets, ensure you are aware of and willing to accept the accompanying risks. Do not trade money you cannot afford to lose.

All Rights Reserved. None of the content of this website can be published elsewhere by any means without the prior consent of the owner(s). Please, check our terms & conditions and privacy policy before continuing to use this website.

This website and its owner(s) are not in any way liable for any incurred loss, whether caused by the information provided on this website or otherwise. The use of this website, including the content and information provided, is the user’s sole liability.