The EUR/USD currency pair seems to have found a bottom for the time being at the $1.1780 level and ever since the release on Tuesday of better than expected inflation figures from the US, followed by US Federal Reserve Jerome Powell’s testimony to congress on Wednesday, the Euro has been moving higher from this level and for now has found some stability.
Weaker than expected industrial production figures and disappointing numbers from the Philadelphia Fed Survey released from the US yesterday may have backed up Fed president Powell’s dovish stance about the US economy and that the central bank needs to be patient before reducing their stimulus program or lifting interest rates.
This all sits well for the Euro and with speculation about the Feds next moves regarding monetary policy firmly behind us, the market will now once again focus on economic data which will begin today with the release of CPI figures from the Eurozone. This will be followed later in the day by retail sales figures and the Michigan consumer sediment index from the US.
For now, the Euro is trading in the range of $1.1780 to $1.1840 and as we can see on the chart the EUR/USD currency pair remains motionless as the market awaits the economic news mentioned above.
We will need to see a break above the $1.1840 resistance level for the Euro to remain in any meaningful uptrend and this is unlikely to happen today, and the currency is expected to remain within the current range as the trading week closes out.