Bearish view
Sell the EUR/USD pair and set a take-profit at 1.1150.
Add a stop-loss at 1.1250.
Timeline: 1-2 days.
Bullish view
Buy the EUR/USD pair and set a take-profit at 1.1250.
Add a stop-loss at 1.1150.
Top Regulated Brokers
The EUR/USD exchange rate was relatively unchanged on Tuesday morning as traders focused on the upcoming US consumer inflation numbers and as energy prices jumped. It was trading at 1.12127, a few pips below Monday’s high of 1.1226.
US to Publish Consumer Inflation Data
The EUR/USD pair wavered as investors waited for the upcoming US consumer inflation report. Economists expect the report to show that the headline CPI eased from 0.6% in September to 0.3% in October, while the core figure dropped from 0.3% to 0.2%. Unlike in other reports, the Bureau of Labor Statistics (BLS) will not publish the annualized figure because of last year’s government shutdown.
The US inflation report will be important as it will provide hints on what to expect in the next meeting in December. Economists expect the bank to hike interest rates by 0.25% in that meeting, especially after last week’s nonfarm payrolls (NFP) report. The report showed that the economy added 165k jobs as the unemployment rate dropped from 4.2% to 4.1%.
The EUR/USD pair will react to the upcoming statements from several Federal Reserve officials, including Lorie Logan, Jeffrey Schmid, Christopher Waller, and Michele Bowman. These officials will provide hints on what to expect in the coming meeting and next year.
The EUR/USD pair is also reacting to the falling crude oil prices. Brent, the global benchmark, dropped to $91.85, while the West Texas Intermediate (WTI) fell to $86. The two have slipped by over 20% from the highest point last month.
EUR/USD Technical Analysis
The daily chart shows that the EUR/USD pair has been in an upward trend in the past few weeks, moving from a low of 1.1130 on November 6 to a high of 1.1226. It then slipped slightly to the current 1.1217.
The pair has remained above the 50-day Exponential Moving Average (EMA). However, the Supertrend indicator has flipped from green to red, which is a bearish sign. It also formed a doji candlestick pattern, which often leads to a reversal.
Therefore, the pair will likely pullback a bit, potentially to the support of 1.1150. A move above this week’s high of 1.1226 will point to more gains, potentially to the psychological level of 1.1250.
Ready to trade our free trading signals? We’ve made a list of the best European brokers to trade with worth using