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Euro stays below 100-day SMA ahead of US CPI

EUR/USD was at 1.1541, just under the 100-day SMA of 1.1567, as traders positioned for US inflation data that could influence the Fed’s interest-rate path.

Reported · Written up by our desk · Major Pairs

The euro held close to flat versus the US dollar on Tuesday as FX investors looked ahead to Wednesday’s US Consumer Price Index release. FXStreet said EUR/USD traded around 1.1541, staying below the 100-day simple moving average at 1.1567.

Attention also remained on Middle East developments that have fed into energy markets, with West Texas Intermediate rising more than 1.30% to $83.40 amid fears that a conflict resolution is further away than expected. In the same session, the US ADP Employment Change 4-week average pointed to job creation of 8.25K, after a prior figure was revised down by 4K to 11K.

For the CPI outlook, forecasts call for headline inflation to edge down from 3.5% to 3.4% year over year, with underlying inflation expected to decelerate from 2.6% to 2.5% over the twelve months to July. FXStreet also noted that upcoming producer price data could further shape expectations for the Federal Reserve’s forward path on rates.

On the technical side, EUR/USD was around 1.1542 after moving above a prior descending trend-line barrier near 1.1517, with nearby channel levels around 1.1513 acting as support. The report said price was also above the 50, 100, and 200-day moving average cluster near 1.1468, while the 14-day relative strength index around 59 suggested positive momentum that is not yet stretched.

Latest closeEUR/USD 1.155 ▲0.2%

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