The EUR/USD currency pair has been making waves recently, and it’s currently dancing around the 1.1150 mark. Here’s what you need to know:
Recent Highs: The pair has been on a bullish streak, reaching its highest level since March 2022 after convincingly breaking above the 1.1100 mark. Bulls are flexing their muscles, and the euro is strutting its stuff against the US dollar 1.
US Dollar Weakness: The greenback has been feeling a bit under the weather. The latest US inflation data showed signs of easing inflationary pressure, causing the US Dollar Index (DXY) to hit its lowest point since April 2022, hovering just above the 100.50 area. Odds of further rate hikes by year-end have also declined significantly 1.
ECB’s Hawkish Stance: Across the pond, the European Central Bank (ECB) remains hawkish. Persistent inflationary pressure in the euro area is pushing them to consider raising policy rates by a quarter percentage point later this month 1.
Upcoming Data: Keep an eye out for more US inflation data. The Producer Price Index (PPI) is estimated to drop from 6.6% to 6.1% annually, while the core figure is expected to decline from 5.3% to 4.8%. Additionally, the ECB will release the minutes of its latest meeting 1.
Technical Levels to Watch
Resistance: The immediate resistance lies near 1.1150.
Support: On the downside, watch out for the previous daily low at 1.1005.
Psychological Levels: The psychological levels of 1.1100 and 1.1200 are crucial battlegrounds
Recent Highs: The pair has been on a bullish streak, reaching its highest level since March 2022 after convincingly breaking above the 1.1100 mark. Bulls are flexing their muscles, and the euro is strutting its stuff against the US dollar 1.
US Dollar Weakness: The greenback has been feeling a bit under the weather. The latest US inflation data showed signs of easing inflationary pressure, causing the US Dollar Index (DXY) to hit its lowest point since April 2022, hovering just above the 100.50 area. Odds of further rate hikes by year-end have also declined significantly 1.
ECB’s Hawkish Stance: Across the pond, the European Central Bank (ECB) remains hawkish. Persistent inflationary pressure in the euro area is pushing them to consider raising policy rates by a quarter percentage point later this month 1.
Upcoming Data: Keep an eye out for more US inflation data. The Producer Price Index (PPI) is estimated to drop from 6.6% to 6.1% annually, while the core figure is expected to decline from 5.3% to 4.8%. Additionally, the ECB will release the minutes of its latest meeting 1.
Technical Levels to Watch
Resistance: The immediate resistance lies near 1.1150.
Support: On the downside, watch out for the previous daily low at 1.1005.
Psychological Levels: The psychological levels of 1.1100 and 1.1200 are crucial battlegrounds