Daily Analysis : EURUSD ( 13 Dec 2022 )

The pair is trading above 1.0500 (psychological level) and was last seen at 1.0550. Risk appetite is quite high today. The market is waiting for slowing inflation data and has priced this expectation. A 50 basis point increase from the ECB seems certain, but there is some uncertainty on the FED side. The interest rate policy of the FED can be shaped by the inflation data in line with the expectations of the markets. The parity can be supported by inflation data, which will be below expectations.

On the daily chart, the pair is repeated failures to cross the %61.8 Fibonacci retracement level between late March and September 28, around 1.0560. Technically, below the 1.0550/60 region, the momentum could be negative. Also, the Daily RSI is hovering around the overbought condition. Support is seen at 1.0500, then 1.0440. Resistance 1.0595. If the break comes, the pair continue to rise till towards 1.0770.

Support: 1.0500 – 1.0440 – 1.0350

Resistance: 1.0595 – 1.0630 – 1.0770