EUR/USD - H1
Wednesday's hot US CPI Inflation provided the catalyst for breaking below the key 1.1492 support and new 2021 lows – something we had talked about from early November and has occurred multiple times since.
This level marks the 50% Fibonacci of the 2020 low-2021 High advance and daily close below it, can open the door towards 1.1290 (61.8%). On the near term, the pair is exposed to 1.1400, as the US Dollar finds renewed buying interest at the start of the European session, although a breach and sub-1.1370 moves may require a fresh catalyst.
From a technical perspective the move looks overextended and a pushback to 1.1400 would be reasonable, but at this stage the Euro does not seem capable of mustering the strength needed to retake the EMA100 (mid-1.1500s).
Today's economic calendar does not feature any tier1 data, although the European Commission is expected to publish its Autumn Economic Forecast. It is a partial holiday in the US today (veterans Day) and as such, there may be thin volumes, requiring caution.
Past Performance: Past Performance is not an indicator of future results.
Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.