EURUSD pulls back from 200-SMA ahead of US inflation data
EURUSD defies a three-day recovery ahead of the key US Consumer Price Index (CPI) data on early Wednesday. The major currency pair’s weakness could also be linked to the failures to cross the 200-SMA, bearish MACD signals and RSI retreat. Hence, the quote is likely to decline further towards monthly horizontal support near 1.1525-32. However, the yearly low around 1.1510 and 61.8% Fibonacci Expansion (FE) of the September 14 to October 28 moves, near 1.1490, also joined by the March 2020 bottom, could challenge the pair bears afterward.
Meanwhile, recovery moves will be challenged by a convergence of the 200-SMA and 23.6% Fibonacci retracement of September-October fall, around 1.1610. Following that, a downward sloping resistance line from September 03, around 1.1645 and late October’s swing high around 1.1695 will lure the EURUSD bulls. Should the pair buyers manage to cross the 1.1700 hurdle, backed by softer US inflation numbers, the quote may not hesitate to challenge the 61.8% Fibonacci retracement level of 1.1760.
Meanwhile, recovery moves will be challenged by a convergence of the 200-SMA and 23.6% Fibonacci retracement of September-October fall, around 1.1610. Following that, a downward sloping resistance line from September 03, around 1.1645 and late October’s swing high around 1.1695 will lure the EURUSD bulls. Should the pair buyers manage to cross the 1.1700 hurdle, backed by softer US inflation numbers, the quote may not hesitate to challenge the 61.8% Fibonacci retracement level of 1.1760.