EUR/USD Price Forecast: Holds key 100-day SMA at start of the US CPI week
The Euro (EUR) trades marginally lower at around 1.1610 against the US Dollar (USD) during the Asian trading session on Monday. The major currency pair edges down as the US Dollar ticks up, with investors turning cautious at the start of the United States (US) Consumer Price Index (CPI) week.
As the US Consumer Price Index (CPI) week begins, the Euro (EUR) trades slightly lower against the US Dollar (USD) at around 1.1610 on Monday. Market participants are closely monitoring the upcoming US CPI data, released on Friday, to gauge the Federal Reserve's (Fed) stance on monetary policy. Deutsche Bank analysts emphasize the significance of the August US CPI print and the preceding Producer Price Index (PPI) release in shaping market expectations.
Economists forecast a modest increase in headline CPI to +0.38% month-over-month (MoM) compared to the previous +0.07%, while core CPI is expected to remain relatively stable at +0.21% MoM. Concurrently, the US Nonfarm Payrolls (NFP) data for August revealed a stronger-than-anticipated job growth of 162K, surpassing the initial estimate of 56K.
In the technical analysis, EUR/USD is currently trading near 1.1609, maintaining a slightly bullish near-term outlook as it stays above the 100-day Simple Moving Average (SMA) at 1.1563. The Relative Strength Index (RSI) at around 54 suggests a neutral stance, indicating that downside risk persists but without strong momentum exhaustion signals.
Support for the pair is provided by the 100-day SMA at 1.1563, while the psychological level of 1.1500 may offer a cushion if prices continue to decline.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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