EURUSD is looking for a catalyst to define the next trend with the pair failing to get across the key 1.1900 level again. The U.S. election is still not official and we also have German and U.S. inflation numbers tomorrow.
Thursday’s inflation figures start with Germany and a reading of -0.2% is expected, which would match last month’s release. The European Central Bank has been critical of Euro strength in recent weeks and its deflationary effects on the Eurozone economy. Officials from the bank have talked of potential intervention and we are not far from the yearly high around 1.2000. Lagarde and the ECB Vice-President Guindos will give speeches later today and traders will be on the look out for any currency or stimulus talk.
Tomorrow’s U.S. inflation numbers expect to see a 0.1% increase to 1.8% in the core number, which excludes food and fuel. In the October CPI the market expects a dip to 1.3% this month from 1.4%. The Federal Reserve are much closer to the 2% inflation target than most developed nations that have adopted the plan.
The United States election is still not resolved as the Trump campaign launches legal actions. An emergency injunction was used to prevent Michigan from certifying results until officials can confirm all ballots were legal and cast on time. The campaign has issues with the “glitches” in the Dominion vote-counting machines. This issue has the potential to drag through November and has headline risk for the EURSUD pair.
EURUSD Technical Outlook
EURUSD saw a 4-day rally end on Monday with a failure at the 1.1900 level and this has the potential to be a double top. Looking at the daily chart we can see that this level has capped gains for the pair on around 5-6 occasions this year so it is a significant barrier. The investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.
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EURUSD Daily Chart
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