Wednesday 18th July at 10.00am Eurozone Consumer Price Index was released by Eurostat.
This figure captures changes in price of goods and services. Final Year on Year figure showed lower print of 0.9% vs expectations of 1% previously published figure was also 1%. Consumer Price Index MoM came in as 0% vs expected 1%, previously published figure was 0.3%. This data release impacted volatility in EUR currency crosses, with EURUSD staying under pressure, currently trading near psychological 1.1600 level. EURGBP currency pair moved higher, breaking above important 0.8900 resistance level. Current EURGBP bullish reaction was mainly driven by GBP weakness after earlier published Producer Price Index data, also the impact of potentially adverse political events and developments around Brexit issues and potential challenges to Theresa May’s leadership.
EURUSD Bearish Continuation after CPI data.
Important upside resistance is currently at 1.1713. Price action appears bearish below 1.1713 level, targeting downside supports at 1.1600 followed by 1.1554 and 1.1500. Alternatively a confirmed breakout above 1.1713 level changes the outlook targeting additional upside resistances at 1.1770 followed by 1.1813.
EURGBP breakout above psychological 0.8900 level
Key level to watch is at 0.8900 level. This currency pair appears bullish above 0.8900 level, targeting resistances at 0.8954 followed by 0.9000 and 0.9030 levels.
Alternatively a confirmed loss of 0.8900 could target additional downside supports at 0.8870 and 0.8850 levels.