Contributors Technical Analysis Technical Outlook: Euro Is Consolidating Above 1.0700 And Awaiting EU Inflation Data...

Technical Outlook: Euro Is Consolidating Above 1.0700 And Awaiting EU Inflation Data For Signals

The Euro is consolidating within narrow range above former pivot at 1.0700 and fresh highs at 1.0734, posted after Monday’s strong rally when the pair was up 0.84%, on the strongest one-day rally since 15 Mar. Close above 20SMA (1.0688) and former pivotal barrier at 1.0700 (Fibo 38.2% of 1.0905/1.0568 fall) was strong bullish signal for further upside action. The rally faced strong barrier at 1.0738 (daily Kijun-sen) below which it is consolidating, with bullishly aligned daily MA’s conflicting with negative daily indicators. Break above Kijun-sen resistance is needed to open next important barrier 1.0776 (Fibo 61.8%), however, near-term action may stay on hold ahead of release key data from Eurozone, due at 09:00 GMT. Monthly inflation in the Eurozone is forecasted at 0.8% in March, above 0.4% release from February, while annualized CPI is expected to stay unchanged at 1.5% in Mar. The Euro is looking fresh boost on inflation’s upside surprise, with weaker tone expected on inflation miss in March. Solid supports 1.0700/1.0688 are expected to hold and keep strong bullish sentiment in play, while break lower would signal stronger correction of Tuesday’s 1.0634/1.0734 rally.

Res: 1.0738, 1.0776, 1.0800, 1.0825
Sup: 1.0711, 1.0700, 1.0688, 1.0659

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