EUR/UDS Goes For 1.1420 Initially

EUR/USD Technical Analysis

• EUR/USD trend is changing
• Move up is expected
• Above 1.1360 stronger move
• 1.1519 final target

H4 CHART EUR/USD

1. Swing low
2. Double top
3. Bounce zone
4. Final target

The Eurozone preliminary CPI came out +5.0% vs +4.7% y/y expected. The CPI presents the change in the price of goods and services purchased by consumers. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate. The EUR/USD should bounce from 1.1330 area towards 1.1360. Above 1.1360 stronger momentum should kick in and the next target is 1.1420. The final target is 1.1519. We don’t think we should see 1.1519 without a fundamental driver, in this case next week FED. But the focus is on the move up and 1.1420.

For a look at all of today’s economic events, check out our economic calendar.

Cheers and safe trading,

Nenad