The Euro ticked higher on Monday after inflation in the Eurozone hit the highest in four month.
Annualized CPI came at 1.5% in Aug, meeting the forecast while m/m release came at 0.3%, along with forecast but well above previous month’s -0.5% release.
The pair remains entrenched between daily Kijun-sen (1.1877) and daily Tenkan-sen line (1.1964) which was dented on Friday but without clear break higher.
Today’s price action is so far holding between 20SMA (1.1914) and 10SMA (1.1949), looking for initial signal on break of either boundary.
However, break of either wider range boundaries (Tenkan-sen / Kijun-sen) would provide clearer direction signals.
Studies on daily chart remain bullishly aligned but reversal signal is generating on weekly chart as overbought RSI is turning.
Violation of daily Kijun-sen (1.1877) and rising weekly 10SMA (1.1850) would be seen as firmer signal of deeper correction.
Alternatively, lift above daily Tenkan-sen (1.1964) and psychological 1.2000 barrier would generate stronger bullish signal.
Res: 1.1949, 1.1964, 1.2000, 1.2029
Sup: 1.1914, 1.1877, 1.1850, 1.1837
