Daily Analysis : EURUSD ( 14 Dec 2022 )

The pair rose sharply and was last seen at 1.0630. Risk appetite is quite high due to lower-than-expectation inflation data from US. The market priced 50 bps increase from FED today. If it happens today, the Euro traders will start to wait that FED will start to reduce rates in beginning 2023. Yesterday, the German CPI came in low enough to consider inflation slowing in Europe. A 50 bps increase from the ECB seems certain.

Technically, above 1.0550/60 region, the momentum could be positive. Also, the Daily RSI is hovering around overbought condition. Support is seen at 1.0550, then 1.0460. Resistance 1.0690. If the break comes, the pair continue to rise till towards 1.0750.

Support: 1.0550 – 1.0460 – 1.0400

Resistance: 1.0690 – 1.0750 – 1.0830