EURUSD has continued its recovery by recording a steady rise since last week. After successfully passing the nearest resistance at 1.1920, EURUSD continued to rise and is now trading around 1.1960. The weakness of the USD clearly helped the rise of this currency pair, and the US inflation data (US CPI) published last night clearly had a positive impact on the market. CPI data excluding food and energy was recorded at a high of 1.6% compared to expectations of 1.5% (previous data of 1.3%).
EURUSD finally made the move after it was restrained in horizontal movement for 3 days last week; the barrier level of 1.1920 was successfully broken, thus giving upward momentum to EURUSD. Currently, EURUSD is below the resistance of the 50 day Moving Average 1.1962, while the R1 weekly pivot level is slightly above 1.1973. The next resistance level is at the March 17 high of 1.1990. Sellers in the market are clearly in a state of shock, and they need to push the EURUSD price below 1.1900 if they want to continue dominating the market, with the 200 Day Moving Average level being an important support. A break of this support and 1.1900 would activate the weekly pivot point at 1.1855 as an important support.
Economic data for the Eurozone and the US is relatively light today (Wednesday); the Eurozone is due to publish its Industrial Production data and ECB President Lagarde with a speech later. Also FED Chairman Jerome Powell will give a speech at an official event.
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Tunku Ishak Al-Irsyad
Market Analyst
HF Educational Office – Malaysia
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