EUR/USD capitalized on broad-based dollar weakness and climbed toward the upper limit of its December trading range around mid-1.1300s late Wednesday before going into a consolidation phase on Thursday. Additional recovery gains are likely if 1.1320 support holds, FXStreet’s Eren Sengezer reports.
“Investors expect the Core PCE inflation to rise to 4.5% on a yearly basis in November from 4.1% in October. A stronger-than-expected print could revive inflation fears and cause the risk rally to lose steam. On the flip side, a soft inflation reading is likely to limit a potential recovery in the DXY.”
“1.1360 (post-ECB high) aligns as the first technical resistance before 1.1380 (Nov. 30 high) and 1.1400 (psychological level).”
“Additional corrective losses toward 1.1300 (psychological level, 100-period SMA) and 1.1280 (50-period SMA) could be witnessed if a four-hour candle closes below 1.1320 (200-period SMA).”
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