Eurusd Stable As Investors Await Cpi

 Eurusd Stable As Investors Await Cpi

Eur/Usd Stable Above 1.0900 As Investors Await Us Inflation Data

It appears that the EUR/USD is in a consolidation phase during Tuesday's trading session. Meanwhile, the greenback remains subdued, and the bond yields are also under pressure. As a result, it is normal for the EUR/USD to cling to its gains as the investors look forward to the US CPI release.

look at the RSI indicator shows a reading near 50, while the 4-hour chart shows that the price is still near the mid-line of the bullish regression channel. Similarly, the EUR/USD reaction to the 20 SMA shows that buyers are hesitant as an important US economic release is ahead.

Eur/Usd - 1.0850 Remains An Important Support

The 1.0900 is the most important support on the downside followed by the 1.0880 and then the 1.0850. Next up is the 1.0825 and then the 1.0800 which can provide a cushion to the EUR/USD buyers.

On the upside, the next level that is relevant is 1.0960, while the next stop for the bulls is 1.0980. A US CPI report that favors the EUR means the 1.100 resistance will also get into the grasp of the EUR bulls.

For now, it appears that the EUR/USD has become stuck as it is still trading under the 1.0950 handle. A day earlier, the EUR/USD ended up closing in red, which suggests that investors now want to wait for the CPI release.

In the short term, the EUR/USD chart shows a lack of bullish momentum. However, this also doesn't mean that investors are favoring the USD instead of the EUR.

If we look at the overall market, the USD appears to be in a losing position. No one wants exposure to the greenback before the release of the CPI, which is the biggest factor keeping the EUR/USD afloat for now.

The CPI is released by the BLS and provides insight into the inflation situation in the USA. On a yearly basis, the forecast for the CPI is 3.1%, while the core CPI forecast is set at 3.7% against an earlier value of 3.9%.

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