EURUSD retreat today after a seven day rally that drove the price to seven week highs. Speculation that the Federal Reserve will proceed with an interest rate cut in the next policy meeting has pressured the US dollar.
Earlier today the European Monetary Union Consumer Price Index came in at 1.2% in line with forecasts in February. The Producer Price Index came in at 0.4%, below the expectations of 0.5% in January. The European Monetary Union Unemployment Rate registered at 7.4% in January in line with market consensus.
US President Donald Trump in a tweet noted that the RBA lowered its interest rates to 0.5% from 0.75% to battle the economic impact amid the coronavirus outbreak and called upon the Federal Reserve to make a significant interest rate cut.
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EURUSD Resistance and Support
EURUSD is 0.15% lower at 1.1117 retreating from recent highs, and after seven consecutive positive trading sessions. EURUSD tested earlier the 200-day moving average and managed to rebound thus keeping the bullish momentum.
On the downside, initial support stands at 1.1099 the daily low. If the EURUSD pair breaks below the next target would be the 1.1053 the 100-day moving average. Next support will be met at 1.1026 the 50-day moving average.
On the other hand, immediate resistance for the pair stands at 1.1155 the daily top. A break above might target the next resistance level at 1.1184 the high from yesterday’s trading session. More selling pressure would be met at 1.1205 the high from January 6th.
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