EUR/USD is in focus ahead of US inflation and ECB

EUR/USD is in focus ahead of US inflation and ECB

Latest news

  • Biden canceled bans on TikTok and WeChat, imposed by Trump. He ordered an investigation of the apps from foreign adversaries to check a possible security risk.
  • The US inflation will come out today at 15:30 GMT+3. Traders cant wait to see the numbers as they will shed the light on when the Fed might start talking about tapering asset purchases. It will impact hugely EUR/USD.
  • The ECB will make a policy statement at 14:45 GMT+3. The optimistic tone of the bank will support the euro, while the cautious or uncertain tone may press the euro down.
  • Bitcoin recovered some losses due to El Salvadors President, who allowed to use the BTC as a legal tender.

Technical outlook

EUR/USD is moving inside the descending channel. If it manages to cross the lows of early June at 1.2160, it may fall to the 200-period moving average of 1.2145. On the flip side, the move above the 50-period moving average of 1.2185 will open the doors up to yesterdays high of 1.2200.

EUR/USD is in focus ahead of US inflation and ECB

EUR/USD chart

Gold has started the day on the back foot as the USD strengthened. If it drops below Mondays low of $1885, it may fall to the low of June 4 at $1870. In the opposite scenario, the move above the psychological mark of $1900 will push the pair to the next resistance level of $1910. The long-term trend is bullish, and since gold tends to stick to its long-term trend, we would expect gold to rise in the long run.

EUR/USD is in focus ahead of US inflation and ECB
XAU/USD chart

Brent oil (XBR/USD) dropped but was supported by the lower trend line at $71.50. The way to $72.00 is open now. If the price manages to cross it, the way up to yesterdays high of $72.50 will be open. Support levels are the 50-period moving average of $71.00 and Tuesdays low of $70.50.

EUR/USD is in focus ahead of US inflation and ECB

USD/JPY is edging higher inside the ascending channel. The move above the high of May 28 at 109.80 will open the doors to the high of June 4 at 110.30. On the flip side, if it drops below the lower trend line at 109.15, the pair may fall to the low of May 24 at 108.65.

EUR/USD is in focus ahead of US inflation and ECB

USD/JPY chart

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