Euro consolidates below mid-1.1500s vs USD ahead of German HICP, US CPI
The EUR/USD pair struggles to gain any meaningful traction and holds steady around mid-1.1500s during the Asian session on Wednesday, within a familiar range held over the past week or so.
The EUR/USD exchange rate has been indecisive, hovering around the mid-1.1500s during Wednesday's Asian trading session. Traders are closely watching for the release of key U.S. inflation data, particularly the Consumer Price Index (CPI) and Producer Price Index (PPI), which will provide insight into the Federal Reserve's future policy direction.
Rising oil prices due to geopolitical tensions have fueled inflation concerns, which in turn support the U.S. Dollar and weigh on the EUR/USD pair. The U.S. Dollar's strength is also bolstered by traders' anticipation of potential interest rate hikes by the Federal Reserve. Germany's Harmonized Index of Consumer Prices (HICP) for July will be released on Wednesday, but the EUR/USD pair's direction is largely dependent on the U.S. Dollar's performance.
The pair remains below its 100-day Simple Moving Average and the 50.0% Fibonacci retracement of the recent price decline, indicating limited upside potential. On the downside, support can be found at the 38.2% Fibonacci retracement level, followed by the 23.6% retracement level.
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