FX.co ★ iMeta | EUR/USD

EUR/USD is in a tight trading range, oscillating within the 1.0630s. This restrained movement hints at a market poised for action, with traders holding their breath in anticipation of the forthcoming March US Consumer Price Index (CPI) data. Scheduled for release on Wednesday, this economic indicator promises to be the week's prime mover, potentially injecting volatility into the currency markets. Understanding the Market Dynamics: The prevailing calmness in EUR/USD volatility can be attributed to traders exercising caution and adopting a cautious stance as they await the unveiling of CPI figures. Market analysts closely monitor forecasts projecting a 3.4% year-on-year surge in US prices for March, alongside expectations for core goods to rise by 3.7% year-on-year. These anticipated figures, significantly surpassing the Federal Reserve's 2.0% target, indicate that any notable deviation could sway the Fed's interest rate deliberations, adding a layer of anticipation to the market sentiment surrounding the currency pair. Technical Analysis of the EUR/USD: EUR/USD sustains its bullish momentum, underpinned by robust technical indicators. The pair portrays a promising trajectory while maintaining its position above the critical 100-EMA. The Relative Strength Index also stands firmly bullish at 56.50, affirming a propensity for upward movement. Crucial support is established at the 100-period EMA situated at 1.0833, with the lower boundary of the Bollinger Band at 1.0727 serving as an added safeguard against potential downward pressures, delineating a dynamic landscape for the currency pair's movement.

The initial notable resistance obstacle for EUR/USD materializes at the upper limit of the Bollinger Band, positioned at 1.0770. This is succeeded by the psychological threshold at 1.0800, aligning with a previous peak observed on March 18. A successful breach beyond this level can propel EUR/USD towards the high registered on March 21 at 1.0941, marking a substantial upward surge for the currency pair, charting an intriguing trajectory amidst the evolving market dynamics.