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5 Jan 2015
EUR/USD recovers ahead of German CPI data
FXStreet (Mumbai) - The EUR/USD pair recovered partially from the low of 1.1866 hit earlier today ahead of the release of the final CPI reading for December 2014.
The pair now trades 0.45% lower at 1.1949 levels, compared to the Friday’s close of 1.2003 levels. The pair slid today after a break below 1.2 levels triggered stop losses on long positions, which pushed the pair well below 1.19 levels. However, the pair has now recovered to trade above the critical support levels located at 1.1932 (May 2003 high) and 1.1927 (June 2003 high). Investors now await fresh cues in the form of German retail sales and CPI data due for release today.
Markets are likely to be more focused on the German CPI data which is likely to show price pressures inched dangerously closer to zero level in December. Markets see year-on-year CPI in December at 0.2%, down from 0.5%. A drop in the German CPI may further weigh on the single currency.
EUR/USD Technical Levels
The pair has strong support located at 1.1932-1.1927, under which the pair may re-test 1.1866 levels. On the other hand, immediate resistance is seen at 1.1975 and 1.12 levels.
The pair now trades 0.45% lower at 1.1949 levels, compared to the Friday’s close of 1.2003 levels. The pair slid today after a break below 1.2 levels triggered stop losses on long positions, which pushed the pair well below 1.19 levels. However, the pair has now recovered to trade above the critical support levels located at 1.1932 (May 2003 high) and 1.1927 (June 2003 high). Investors now await fresh cues in the form of German retail sales and CPI data due for release today.
Markets are likely to be more focused on the German CPI data which is likely to show price pressures inched dangerously closer to zero level in December. Markets see year-on-year CPI in December at 0.2%, down from 0.5%. A drop in the German CPI may further weigh on the single currency.
EUR/USD Technical Levels
The pair has strong support located at 1.1932-1.1927, under which the pair may re-test 1.1866 levels. On the other hand, immediate resistance is seen at 1.1975 and 1.12 levels.