© Reuters. EUR/USD corrects after the CPI-US
Investing.com – The day is placed under the sign of the correction for the EUR/USD, which just scored a hole in 1.1280, after a peak at 1.1341 early this morning.
Recall that the pair was bouncing from about 80 pips yesterday, mainly due to a correction of the Dollar.
However, the greenback had quickly stopped his fall, initiating a rebound is significantly accentuated following the publication of the CPI, US better than expected at 14: 30, where the new lows on the Euro-Dollar.
The IPC annual general is, in fact, came out at 1.6% vs. 1.5% expected for the month of January, while the CPI Core is displayed at 2.2%, against 2.1% expected earlier.
The comments of Bostic, a member of the Fed, have also boosted the Dollar, the latter has stated thatit expects a rate hike from the Fed in 2019, while the market no longer provides any.
Spain is also under the spotlight, with the release of the budget 2019 by the Spanish Parliament today, which should lead to new elections (the third in less than 4 years), a political instability which has worried investors.
From a graphical point of view, several signals bearish were able to be identified in the course of the decline of the day, with a break below the moving average 100 hours and under the psychological threshold of 1.13.
At this stage, the next support is located on the hollow yesterday, also hollow annual 2019, 1.1257, before the low of last year at 1.1214. Has the upside, the first resistance is on the psychological threshold of 1.13.
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