EUR/USD Price Forecast, Analysis and Chart:
- Euro-Zone CPI rises to 1.3% from 1.0%, core CPI remains unchanged.
- EUR/USD little changed and stuck in a tight range.
EUR/USD Outlook – Monday’s Range Holds Sway
The latest look at price pressures in the Euro-Zone showed inflation picking up to 1.3% in December from 1.0%, while core inflation remained unchanged at 1.3%. Other data released showed a strong month-on-month pick-up in retail sales in December to 1.0% from a prior -0.3%. While both releases should provide support for the single currency, EUR/USD is little changed on the session so far and is stuck inside yesterday’s bullish candle.
The EUR/USD daily chart shows support at 1.1156 and 1.1128, the 200-day moving average, while the recent multi-month high at 1.1240 may prove difficult to break without a strong driver. Range trading is expected over the near-term.
EUR/USD Daily Price Chart (January 2019 – January 7, 2020)
| Change in | Longs | Shorts | OI |
| Daily | 0% | 11% | 3% |
| Weekly | -3% | -5% | -3% |
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What is your view on the Euro and the US Dollar – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.com or via Twitter @nickcawley1.
