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27 Nov 2014
EUR/USD eyes 1.2500 after CPI
FXStreet (Edinburgh) - The single currency remains on recovery-mode on Thursday, pushing EUR/USD back to the upper-1.2400s.
EUR/USD ready for 1.2500?
Spot keeps retracing the earlier decline to session lows around 1.2460, now hovering over the 1.2500 neighbourhood albeit still in negative territory. In the data front, German advanced inflation figures showed consumer prices advanced at an annual rate of 0.6%, matching estimates and lower than October’s 0.8% gain; on a monthly basis, prices came in flat vs. a forecasted 0.1% advance although recovering from the previous 0.3% drop. Lee Hardman, Currency Analyst at BTMU, suggested, “we expect the euro to fall more sharply now in the first quarter of 2015 with EUR/USD falling below the 1.2000-level in the first half of next year and likely to remain below during the rest of the year”.
EUR/USD levels to watch
As of writing the pair is down 0.19% at 1.2485 and a breach of 1.2443 (low Nov.26) would open the door to 1.2402 (low Nov.25) and then 1.2358 (2014 low Nov. 7). On the other hand, the immediate resistance lines up at 1.2532 (high Nov.26) followed by 1.2550 (30-d MA) ahead of 1.2569 (high Nov.21).
EUR/USD ready for 1.2500?
Spot keeps retracing the earlier decline to session lows around 1.2460, now hovering over the 1.2500 neighbourhood albeit still in negative territory. In the data front, German advanced inflation figures showed consumer prices advanced at an annual rate of 0.6%, matching estimates and lower than October’s 0.8% gain; on a monthly basis, prices came in flat vs. a forecasted 0.1% advance although recovering from the previous 0.3% drop. Lee Hardman, Currency Analyst at BTMU, suggested, “we expect the euro to fall more sharply now in the first quarter of 2015 with EUR/USD falling below the 1.2000-level in the first half of next year and likely to remain below during the rest of the year”.
EUR/USD levels to watch
As of writing the pair is down 0.19% at 1.2485 and a breach of 1.2443 (low Nov.26) would open the door to 1.2402 (low Nov.25) and then 1.2358 (2014 low Nov. 7). On the other hand, the immediate resistance lines up at 1.2532 (high Nov.26) followed by 1.2550 (30-d MA) ahead of 1.2569 (high Nov.21).