Euro stalls below 100-day SMA ahead of US CPI release
The euro edged slightly lower against the dollar on Tuesday, hovering beneath its 100-day simple moving average, as investors looked ahead to Wednesday’s US consumer price index report that may influence Federal Reserve policy.
The EUR/USD pair traded with a mild negative bias on Tuesday, remaining capped by the 100-day simple moving average. Market participants are treading cautiously ahead of the US consumer inflation report scheduled for release on Wednesday.
The CPI data is widely seen as a key input for the Federal Reserve’s next monetary policy decision. A stronger-than-expected print could bolster the dollar and push the euro lower, while a cooler reading might lend support to the common currency.
The 100-day SMA has acted as technical resistance in recent sessions, with the euro failing to sustain moves above this level. Traders are watching for a breakout either way following the inflation release.
Source: FXStreet Forex News