EUR/USD: inflation in the EU remained within market expectations
Current trend
The European currency closed yesterday with growth after the data on consumer prices in the EU were published. Currently, the EUR/USD pair is trading in a corrective trend around 1.0844.
EU consumer price inflation remained in line with market forecasts, accelerating marginally to 5.9% in February from 5.8% YoY, while the monthly increase was 0.9%. The consumer price index excluding food and fuel prices also remained unchanged, amounting to 2.7%. Currently, the main component of inflation is accounted for by energy resources, the cost of which is at its maximum against the backdrop of a special military operation by Russian troops in Ukraine, which has already caused supply disruptions and correction of supply chains.
Meanwhile, the US currency is gradually declining. Yesterday's macroeconomic statistics were assessed by the market quite positively. Initial Jobless Claims fell to 214K from 229K a week earlier, and the total number of people receiving benefits fell to 1.419M from 1.490M in the previous period. Recently, the dynamics of the US currency have been determined not by the economy but by the fundamental background. Yesterday it became known that the Republican Party in the national Senate submitted a bill to ban imports of uranium from Russia, which could threaten serious problems for the United States since the share of Russian uranium in national imports reaches 16%.
Support and resistance
The asset moves within a wide downward channel, correcting upwards within the local trend. Technical indicators hold a global sell signal: fast EMAs on the Alligator indicator are below the signal line, and the AO oscillator histogram moves deep in the sell zone.
Support levels: 1.1030, 1.0834.
Resistance levels: 1.1135, 1.1473.
The European currency closed yesterday with growth after the data on consumer prices in the EU were published. Currently, the EUR/USD pair is trading in a corrective trend around 1.0844.
EU consumer price inflation remained in line with market forecasts, accelerating marginally to 5.9% in February from 5.8% YoY, while the monthly increase was 0.9%. The consumer price index excluding food and fuel prices also remained unchanged, amounting to 2.7%. Currently, the main component of inflation is accounted for by energy resources, the cost of which is at its maximum against the backdrop of a special military operation by Russian troops in Ukraine, which has already caused supply disruptions and correction of supply chains.
Meanwhile, the US currency is gradually declining. Yesterday's macroeconomic statistics were assessed by the market quite positively. Initial Jobless Claims fell to 214K from 229K a week earlier, and the total number of people receiving benefits fell to 1.419M from 1.490M in the previous period. Recently, the dynamics of the US currency have been determined not by the economy but by the fundamental background. Yesterday it became known that the Republican Party in the national Senate submitted a bill to ban imports of uranium from Russia, which could threaten serious problems for the United States since the share of Russian uranium in national imports reaches 16%.
Support and resistance
The asset moves within a wide downward channel, correcting upwards within the local trend. Technical indicators hold a global sell signal: fast EMAs on the Alligator indicator are below the signal line, and the AO oscillator histogram moves deep in the sell zone.
Support levels: 1.1030, 1.0834.
Resistance levels: 1.1135, 1.1473.
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