EUR/USD – H1
Eurozone Consumer Price Index rose 5.0% y/y in December, in line with the preliminary figure, but higher than November +4.9% y/y. The Core reading was +2.6% y/y, same preliminary and prior readings.
Germany factory inflation though, surged according to this morning's data, which showed Producer Price Index of +24.2% year-over-year last month, versus +19.2 in November.
Earlier, ECB President Ms Lagarde commented that the because of the difference in economic recovery the ECB has "every reason not to act as rapidly and as brutally that one can imagine the Fed would do" as reported by Reuters. 
Markets will now turn to the accounts of the European Central Bank's monetary policy meeting (12:30 GMT) and US weekly Jobless Claims (13:30) for direction.
EUR/USD comes from a very good week, but during the current one, it erased its progress and despite yesterday's rebound, it appears cautious so far today.
Having rejected the key 38.2% Fibonacci of the "September High/November Low" drop, bias remains on the downside, and we remain cautious about its upward aspirations. As such, it is vulnerable to the ascending trend-line from November's 2021 lows (at around 1.1300-1.1290), but it is probably early to talk about a larger drop towards 1.1221.
On the other hand, the pair rebounded yesterday and tries to stay close to its EMA100, above which it will have the chance to push towards 1.1400-1.1415, but a catalyst will be required for a broader recovery.
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.