Market Analysis

Technical Analysis: EURUSD remains bearish after a strong correction

EUR/USD went back above 1.19 after a nice price correction. A strong sell environment has recovered after today’s US Core CPI. Ten-year Treasury yields are hovering around 1.55% ahead of the all-important bond-auction due later. 

The EUR/USD pair spent most of the day trading a handful of pips below the 1.1900 level, confined to a tight 60 pips range. Market players keep looking at US Treasury yields for direction, although they spent the first half of the day hovering around Tuesday’s closing levels. In the meantime, stocks in Asia and Europe posted modest intraday advances.

The EU macroeconomic calendar was empty, but the US has just published February inflation figures. The annual Consumer Price Index came in at 1.7% as expected in February, better than the previous 1.4%. However, core annual inflation resulted at 1.3%, below the previous and the expected 1.4%. The dollar lost some pips against its major rivals, but the reaction seems limited in the FX board. On the other hand, the headline helps equities to pick bullish steam, with EUR/USD aiming to advance beyond 1.1900.