The Euro declined this past week and broke the 1.2350 support against the US Dollar.
There is a key bullish trend line forming with support at 1.2265 on the 4-hours chart of EUR/USD.
The pair must break the 1.2350 and 1.2370 resistance levels to gain upside momentum.
The Euro Zone CPI in Jan 2018 increased 1.3% (YoY), similar to the forecast.
EURUSD Technical Analysis
This past week was mostly bearish for the Euro as it moved below the 1.2350 support against the US Dollar. The EUR/USD pair is currently holding the 1.2250 support, but it remains at a risk of more declines.The 4-hours chart suggest that the pair struggled to hold gains above the 1.2400 level and declined below the 100 simple moving average (red, 4-hour). The pair traded close to the 1.2250-60 support area and later is started consolidating losses.On the downside, there is a key bullish trend line forming with support at 1.2265 on the same chart. If there is a break below the trend line and support at 1.2250, there could be more losses toward the 1.2200 level.On the upside, there is a connecting bearish trend line with resistance at 1.2330. Above 1.2330, the pair must break the 1.2350 and 1.2370 resistance levels to move back in the bullish zone.Above 1.2370, the next major resistance is near the 50% Fib retracement level of the last decline from the 1.2555 high to 1.2260 low at 1.2407.This past week, the Euro Zone saw the CPI report for Jan 2018 by the Eurostat. The market was looking for a rise of 1.3% compared with the same month a year ago. The actual result was similar, but the monthly CPI declined 0.9%, compared with the last +0.4%.The report added:
The lowest annual rates were registered in Cyprus (-1.5%), Greece (0.2%) and Ireland (0.3%). The highest annual rates were recorded in Lithuania and Estonia (both 3.6%) and Romania (3.4%). Compared with December 2017, annual inflation fell in twenty-one Member States, remained stable in one and rose in six.
Overall, the Euro may find it hard to recover above 1.2350 in the near term. On the downside, the 1.2250 and 1.2200 levels are important supports.
The 4-hours chart suggest that the pair struggled to hold gains above the 1.2400 level and declined below the 100 simple moving average (red, 4-hour). The pair traded close to the 1.2250-60 support area and later is started consolidating losses.On the downside, there is a key bullish trend line forming with support at 1.2265 on the same chart. If there is a break below the trend line and support at 1.2250, there could be more losses toward the 1.2200 level.On the upside, there is a connecting bearish trend line with resistance at 1.2330. Above 1.2330, the pair must break the 1.2350 and 1.2370 resistance levels to move back in the bullish zone.Above 1.2370, the next major resistance is near the 50% Fib retracement level of the last decline from the 1.2555 high to 1.2260 low at 1.2407.This past week, the Euro Zone saw the CPI report for Jan 2018 by the Eurostat. The market was looking for a rise of 1.3% compared with the same month a year ago. The actual result was similar, but the monthly CPI declined 0.9%, compared with the last +0.4%.The report added: