EUR/USD Rebounds on German CPI Data
- EUR/USD Trades Higher after German CPI Release
- EUR/USD Daily Resistance Found Near 1.1278
- What’s next for the EUR/USD and US Dollar Pairs? Learn more with our Trading Guide
The EUR/USD is now trading to new daily highs, as German CPI figures were released better than expected this morning. Expectations were set for today’s event at 0.6%, with figures released at an actual 0.7% (YoY) (Sep). Technically, the pair is moving on intraday resistance at 1.1250. A move through this value may open up the pair to test a declining trendline, which suggests daily resistance resides near 1.1278. Traders should continue to monitor these values going into tomorrow’s Euro Zone CPI release. Expectations are set at 0.4% (YoY) (Sep), and as a high importance event this release does have the ability to create volatility in the EUR/USD.
EUR/USD, Daily Chart & Resistance
(Created with TradingView)
In the 5 minute graph below, the EUR/USD can be seen rebounding from its daily low at 1.1196. The Grid Sight Index (GSI) has deciphered this move as a short term uptrend, with the EUR/USD putting in a series of higher highs in the last 3 hours of trading. After reviewing 49,600,648 pricing points, GSI has also indicated that price action has declined by 20 pips or more in 59% of the reported 29 matching historical events. This places the first historical bearish price distribution at 1.1219. A move through this value would suggest that this morning’s rebound may be seen as a retracement, as the EUR/USD turns back in the direction of its previous trend.
Alternatively, GSI has indicated that prices have advanced by 19 pips or more in 34% of the 29 historical matches. This places the first bullish historical distribution for the EUR/USD at 1.1259. A move through this value would open the EUR/USD to breakout higher towards longer term points of resistance. This includes the previously mentioned descending trendline at 1.1278 followed by the September 15th swing high near 1.1283.
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---Written by Walker England, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.