By Market Crowd Hunter EA
#EUR/USD #markets #forex #CPI
The probable reason for the EUR growth today is the released CPI data in Germany, which indicate a new upward inflationary impulse. Thus, the CPI in Germany in the dynamics of mom increased by 1% after 2 months of decline and this was the highest increase in inflation since September 2022, and over the past 3 years this growth has been in 3rd place (stronger inflation growth only in September 2022 by 1.9% and in March 2022 by 2.5%).
Year-on-year, the CPI also increased to 8.7% (from the previous figure of 8.6%). The further growth of the CPI indicates the insufficiency of the ECB’s actions and a signal for an even greater tightening of the PREP in the EU.
In the ratio of buyers and sellers, values close to parity are observed. This usually indicates market uncertainty.
Technically, the price has reached the resistance level of 1.0750 – 1.0775. At the same time, we can observe the “doji” (07.02) and “absorption” candlestick patterns (if, according to the results of today’s trading, the EURUSD pair is fixed at the current values or higher).
Technically and fundamentally, we now have signals for growth. Confirmation will be the consolidation of the price at the end of the day above the broken level of 1.0750 – 1.0775. Also, data on unemployment benefits in the United States will be released today. Previous data on the labor market were strong and the Fed pointed to this. So there is a high probability of an acute market reaction to today’s data.
At the same time, I do not rule out a decline scenario in case of breaking through the lower border of the channel, from which the price had previously strayed and fixing the price within the main channel, in which the price was from the end of September 2022 to the middle of November 2022.
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