If the PPI data yesterday is any indication, it is that this is a market that is wanting to get greedy. And unless the CPI data later turns in at a beat, it might be tough to stem the tide we’re seeing. That poses a risk for the dollar of getting swept away by the current. And we’re starting to see that show up in the technical side of things too.
Here are two main ones to watch for a stronger technical breakout in trading this week.
EUR/USD daily chart
The first of which is EUR/USD, which has firmly broken back above 1.0800 for the first time in five weeks. The pair also took out its 200-day moving average (blue line) just under that yesterday. But buyers are now running into key resistance from the 100-day moving average (red line) at 1.0822.
If anything else, this will be the make or break spot for the pair as traders will look to the US CPI data later for the next move.
A break above…
