The euro is currently hovering around $1.185, facing downward pressure but remaining supported by underlying factors. The ECB appears comfortable with the euro’s strength, while US inflation data suggests potential Fed easing. Technical indicators present a mixed picture, with short-term bearish momentum countered by longer-term upward trends.
- The euro is near a four-year peak, reaching above $1.20 in late January.
- The ECB is comfortable with the euro’s recent strength.
- Eurozone industrial production fell 1.4% in December, aligning with expectations.
- US inflation slowed to 2.4% in January, hinting at possible Fed policy easing.
- EUR/USD receded to daily lows near 1.1850.
- Near-term picture is neutral, with a potential for a deeper decline below 1.1840.
- The 20-day SMA at 1.1848 has been providing dynamic support.
Overall, the currency’s performance is influenced by a combination of factors. While positive sentiment from the European Central Bank and longer-term technical indicators offer some support, the currency faces short-term downward pressures from a stronger dollar and mixed economic data. This suggests that the asset’s direction remains uncertain, with key support levels potentially determining its near-term trajectory.