The EUR/USD is rising for the second day ahead of Joe Biden’s inauguration and the Eurozone inflation data. The EUR to USD pair is trading at 1.2145, which is slightly above this week’s low of 1.2055.
What’s happening: The focus today will shift to the United States, where Donald Trump will become the former president. He will be replaced by Joe Biden who will have a majority in congress. This will probably lead to more stimulus in the US as he has proposed. The EUR/USD will also react to the Eurozone inflation data that will come out at 10:00 GMT.
Economists, using the flash CPI data released two weeks ago expect the CPI remained below 1% in December. They see the headline CPI falling by 0.3% in December and the core CPI rising by 0.2%. Still, while inflation is a key economic data, today’s numbers will possibly have no major impact on the EUR/USD.
EUR/USD technical outlook
The EUR/USD is trading at 1.2145. On the four-hour chart, the pair has moved above the descending trendline that’s shown in black. It is also between the 50-day and 25-day exponential moving averages. The pair has also completed the corrective wave of Elliot Wave and is about to move above the Ichimoku cloud.
Therefore, the EUR/USD will likely continue rising as bulls target the 1.2200 resistance level. However, there is also a possibility of the pair resuming the downward trend.
EURUSD technical chart