EUR/USD Turns Below 1.0400 After The German CPI Data
EUR/USD, which represents the pair of top two currencies, continues to trade in a narrow range. Recently, the CPI data from Germany was released, which was at 10% during November. Just a month before, it was at 10.%, which tells us that the core price inflation in Germany has slowed down a little bit.
Despite the good news from Germany, the EUR/USD still continues to trade just slightly below 1.0400.
EURUSD - Important Support And Resistance Levels
On the 4-hour charts of EURUSD, the 20 SMA is at the 1.0450 level, which also coincides with the ascending trendline. So if EUR/USD manages to rise above that, the 20 SMA will turn into support. In this case, the next target will be the multi-month high and the psychological level of 1.0500, and after that, it will be 1.0530.
If we look towards the downside, the immediate support is the 50 SMA (dynamic) present at 1.03350. If this breaks, the next support level, which is significant for the EUR/USD, is 1.0300. After that, the 100 SMA present at 1.0280 will serve as dynamic support.
Meanwhile, the RSI indicator continues to print close to the 50 level, which is a sign that the pair is not showing any bullish or bearish momentum for now.
During the Asian session, the EUR/USD pair tried to stage a rebound, but after reaching 1.0400, the momentum slowly faded.
As for the fundamental overview, the USD is kind of struggling to find enough buyers, which is the main reason why the EUR/USD fails to find any bearish momentum. Similarly, the major indices from the USA are also painting heavy losses, which is also weighing on the US economy.
Looking ahead, more hawkish comments from the USA could trigger a downward trend in the EUR/USD. But if we also get hawkish comments from the ECB, then it would further strengthen the EUR against the USD. So, for now, the battle remains in the hand of the central banks.