Euro saw a tight range Friday absent any market moving catalyst. Ahead we also have a clear calendar suggesting more of the same indecisive trading. With US inflation due Wednesday likely to be the main driver for the week. Should US CPI figures suggests pressures are easing we may have an excuse to finally push through the bearish trend line from December 28. Otherwise persistent inflation pressures will likely see us rejected with the pattern of lower highs continuing.
Resistance
- 1.08665 – Daily Low/High
- 1.08228 – Bearish Trendline
- 1.07863 – 50D Moving Average
Support
- 1.07599 – Friday Low
- 1.07241 – Last Weeks Low
- 1.07127 – 20D Moving Average
We have little reason to expect substantial movement in EURUSD given the lack of catalyst. That said the combination of resistances on top of market prices will have us looking for a bearish breakout. Consider shorting on the break of Friday’s lows with limited ambitions on the scope of any drop ahead of market data. We will avoid the buy side for the moment until the daily bearish trend gives way with a daily close above said trend line.
