Baxia Markets
March 12, 2024

EURUSD Trading Strong Ahead of German CPI Data

market analysis header imageEURUSD is holding firm near 1.0937 as traders eagerly anticipate the release of German CPI (Consumer Price Index) data. The pair's resilience reflects market sentiment amid ongoing economic developments and central bank policies.

Over the past few sessions, EURUSD has exhibited a bullish undertone despite facing headwinds from various economic indicators. Today's focus lies on the German CPI data, with economists forecasting stability in both month-over-month (MoM) and year-over-year (YoY) inflation rates. Additionally, the Harmonized Index of Consumer Prices (HICP) is expected to remain unchanged, providing insight into the eurozone's inflationary pressures.

EURUSD Trading Strong Ahead of German CPI Data

From a technical perspective, EURUSD remains buoyant above key moving averages, particularly the 50-period Exponential Moving Average (EMA) and the 200-period EMA. This alignment underscores the market's bullish bias, supported further by the Relative Strength Index (RSI) holding above the 50-midline and the MACD (Moving Average Convergence Divergence) signal line in bullish territory above the 0 line. These technical indicators suggest continued upside potential for the pair.

In terms of immediate price action, the upper boundary of the Bollinger Band serves as initial resistance around 1.0943. A breach above this level could trigger a rally towards recent highs, with targets at 1.0981 and the psychological level of 1.1000. However, the pair faces critical resistance at these levels, requiring strong bullish momentum to overcome.

On the downside, key support levels are identified around the 1.0895–1.0905 region, where the 200-period EMA coincides. A breach below this support zone could expose the pair to further downside pressure, with the next significant support seen at the round figure of 1.0800, corresponding to a previous swing low.

Overall, while EURUSD maintains a bullish bias, today's price action hinges on the outcome of the German CPI data release. A positive surprise could fuel further upside momentum, while any disappointment may lead to a corrective pullback. Traders are advised to monitor key levels and market dynamics closely for potential trading opportunities.

Key Takeaways:

- Anticipation builds for German CPI data release, with stability expected in both MoM and YoY inflation rates.
- EURUSD remains bullish, supported by trading above key EMAs and positive technical indicators.
- Immediate resistance levels lie at 1.0943, with targets at 1.0981 and 1.1000 on the upside.
- Critical support identified at 1.0895–1.0905, followed by 1.0800 on the downside.
- Market sentiment hinges on the CPI data outcome, with potential for further upside if expectations are met.


Key Economic Releases to Watch Today

EUR, German CPI

Forecast 0.4% vs Previous 0.2%


Forecast 0.3% vs Previous 0.4%


Forecast 3.1% vs Previous 3.1%


Forecast 0.4% vs Previous 0.3%



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