Daily Technical Analysis: EUR/USD Rises Despite Trade Conflicts, Markets Focus on US CPI Inflation Data
The EUR/USD surged higher on Tuesday, briefly touching the 1.0950 level as bullish momentum continued to build. The pair reached fresh 22-week highs, with euro buyers maintaining control in recovery territory.
U.S. Data in Focus Amid Sparse EU Releases
This week, foreign exchange traders remain focused on U.S. economic data, as the European calendar remains relatively light. The latest U.S. JOLTS job openings report provided some stability, with job postings rising to 7.74 million in January—exceeding the forecast of 7.63 million and improving from December’s downwardly revised 7.51 million.
Key U.S. Economic Events This Week
- Wednesday: The U.S. Consumer Price Index (CPI) for February takes center stage. January’s unexpected rise in inflation dashed hopes for imminent Federal Reserve rate cuts in 2025. Markets now anticipate headline CPI to ease slightly to 2.9% year-over-year from 3.0%.
- Thursday: The U.S. Producer Price Index (PPI) will be released, with core PPI inflation expected to hold steady at 3.6% year-over-year, signaling persistent business-level inflation.
- Friday: The University of Michigan’s Consumer Sentiment Index for March is due, with projections showing a slight decline to 63.4 from 64.7. This reflects a weakening economic outlook amid ongoing trade tensions fueled by President Donald Trump’s global tariff policies.
EUR/USD Daily Technical Analysis for March 12th
The EUR/USD has closed flat or higher in five of the last six trading sessions, climbing 5.5% during that span. Since bottoming near 1.0175, the pair has gained nearly 7.6%, easily breaking through the 200-day Exponential Moving Average (EMA).
However, the pair now faces key technical resistance above the 1.0900 level, an area that previously stalled euro bulls in October and November last year. A decisive break above this region could open the door for further gains.
