- EA CPI Y/Y
- U.S housing starts and IP
EA annual inflation rate was 1.3% in March 2018, up from 1.1% in February. A year earlier, the rate was 1.5% published by Eurostat, the statistical office of the European Union. In April we forecast a slight downtick to 1.2%. A better reading could boost the euro bulls confidence.
EURUSD rejected at the 23.6% fib reaction on Tuesday and continues to fall and hit a low at 1.1816 in today’s Asians session. U.S Treasury yields finally settle above 3.0%, hit four years high and the tradable dollar index (DXY) jumped to 2018 high.
We continue to believe the major has a limited downside risk (max 1.1750-1.1700). Intraday resistance seems to be at 1.1875 above this 1.1940 exists.
The daily studies RSI is making a higher low and the oscillator has been remaining bullish. Today’s April CPI reading is the catalyst besides Italian election talks also in focus.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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