The EUR/USD needs to avoid a fall through the $1.0600 pivot to target the First Major Resistance Level (R1) at $1.0623 and the Thursday high of $1.06278. A return to $1.0620 would signal a bullish session. However, the EUR/USD would need today’s stats and the ECB chatter to support a breakout session.
In the case of an extended rally, the bulls will likely test the Second Major Resistance Level (R2) at $1.0651. The Third Major Resistance Level (R3) sits at $1.0701.
A fall through the pivot would bring the First Major Support Level (S1) at $1.0572 into play. However, barring a data-fueled sell-off, the EUR/USD pair should avoid sub-$1.05. The Second Major Support Level (S2) at $1.0549 should limit the downside. The Third Major Support Level (S3) sits at $1.0498.
Looking at the EMAs and the 4-hourly chart, the EMAs send a bearish signal. The EUR/USD sits below the 50-day EMA ($1.06626). The 50-day EMA fell back from the 200-day EMA, with the 100-day EMA pulling back from the 200-day EMA, delivering bearish signals.
A move through R1 ($1.0621) would give the bulls a run at R2 ($1.0651) and the 50-day EMA ($1.06626). A move through the 50-day EMA would send a bullish signal. However, failure to move through the 50-day EMA ($1.06626) would leave the Major Support Levels in play.
The US Session
It is a busy day on the US economic calendar. Personal income, spending, and inflation will be in focus. An unexpected rise in the Core PCE Price Index would fuel bets of a more hawkish Fed. Economists forecast the Core PCE Price Index to rise by 4.3% year-over-year in January. The Index was up 4.4% in December.
Later in the session, consumer sentiment and Fed chatter will also draw interest. FOMC member Loretta Mester will deliver a post-stats speech.
In the case of an extended rally, the bulls will likely test the Second Major Resistance Level (R2) at $1.0651. The Third Major Resistance Level (R3) sits at $1.0701.
A fall through the pivot would bring the First Major Support Level (S1) at $1.0572 into play. However, barring a data-fueled sell-off, the EUR/USD pair should avoid sub-$1.05. The Second Major Support Level (S2) at $1.0549 should limit the downside. The Third Major Support Level (S3) sits at $1.0498.
Looking at the EMAs and the 4-hourly chart, the EMAs send a bearish signal. The EUR/USD sits below the 50-day EMA ($1.06626). The 50-day EMA fell back from the 200-day EMA, with the 100-day EMA pulling back from the 200-day EMA, delivering bearish signals.
A move through R1 ($1.0621) would give the bulls a run at R2 ($1.0651) and the 50-day EMA ($1.06626). A move through the 50-day EMA would send a bullish signal. However, failure to move through the 50-day EMA ($1.06626) would leave the Major Support Levels in play.
The US Session
It is a busy day on the US economic calendar. Personal income, spending, and inflation will be in focus. An unexpected rise in the Core PCE Price Index would fuel bets of a more hawkish Fed. Economists forecast the Core PCE Price Index to rise by 4.3% year-over-year in January. The Index was up 4.4% in December.
Later in the session, consumer sentiment and Fed chatter will also draw interest. FOMC member Loretta Mester will deliver a post-stats speech.