Harmonized Price Index Watch: EURUSD's Bearish Tone

EURUSD commenced the Asian session with a bearish inclination, seeking support around the 50-period Simple Moving Average. The trading pair finds itself in proximity to a resistance zone ranging from 1.0687 to 1.0704. Today, attention is on the Harmonized Index of Consumer Prices and Core Harmonized Index of Consumer Prices. Economists largely anticipate no alteration in the core harmonized price index, although a stronger-than-expected reading could be the starting point for the end of the bearish trend. 

A glance at the 1-hour chart confirms the prevailing bearish sentiment, with the SMA 50 positioned beneath the SMA 200. The Relative Strength Index (RSI) hovers around the 50-level, signifying a neutral trend. As the price nears the resistance zone and approaches the SMA 200, selling pressure mounts near the SMA 200, presently valued at 1.0705. Furthermore, the SMA 200 and the resistance zone converge near the golden ratio sweet spot, the 61.8% Fibonacci retracement. This suggests that there is still room for bullish momentum to create a swing high near the 61.8% Fibonacci retracement before a bearish correction may push the price lower toward the key support level at 1.0635.

Key economic indicator to watch today

EU, Core CPI

Forecast: 5.3%

Previous: 5.5%

EU, CPI

Forecast: 5.3%

Previous: 5.5%

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