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Denis Sergienko • 2022-08-31

EURUSD rebound needs validation ahead of Eurozone inflation

EURUSD rebound needs validation ahead of Eurozone inflation

Having refreshed the multi-year low the previous week, EURUSD rose during the last two days. That said, the pair traders await flash readings of Eurozone inflation data for August on Wednesday for fresh impulse as they poke a two-week-old resistance line, around 1.0050 by the press time. If the data manages to propel the prices to cross an immediate hurdle, the 100-EMA level surrounding 1.0075 and the 1.0100 threshold will act as the last defenses for the sellers. It’s worth noting that the pair’s upside past 1.0100 enables buyers to aim for the 61.8% Fibonacci retracement level of August 10-23 downside, near 1.090, wherein the mid-August swing low of 1.0121 may offer an intermediate halt.

On the flip side, the 0.9980 and 0.9950 levels can offer nearby support to the EURUSD pair during its fresh declines. Following that, the 19-year low marked in the last week at around 0.9900 should gain the market’s attention. Also acting as the downside filter is the 61.8% Fibonacci Expansion (FE) of August 12-26 moves, near 0.9860.

Elsewhere, steady RSI and the sluggish MACD signal that the bears are running out of steam. However, it all depends upon the Consumer Price Index (CPI), recently known as the Harmonized Index of Consumer Price Index (HICP).

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