The euro currency is finding support at the short term 21 day simple moving average as the EUR/USD currency exchange rate has recovered from the support congestion zone in play at 1.2060 to 1.2055.
Should also be noted that the EUR/USD Forex market is trading near the support line of a two month old rising wedge formation. A rising wedge is usually a bearish chart pattern.
Forex traders are concerned about rising consumer prices in the United States as rising fuel prices boosted the headline number. However the Federal Reserve Board has no plans to change monetary policy nor raise rates anytime soon.
They also have no plans to taper their monthly asset purchase program. Yesterday monthly U.S. factory gate price surged higher adding to worries about overheating inflation.
Today the United States will publish monthly core and headline retail sales data as well as well a monthly industrial production figures. The University of Michigan is also releasing their monthly initial consumer sentiment index.
The European Central Bank is releasing the monetary policy account of their last policy meeting. The United Kingdom will also release economic data. The CB leading index is scheduled for release in the UK.
Daily Euro Currency Technical Analysis (EUR/USD)
Looking at the above EUR/USD daily MT 4 price chart, the 14 day MACD histogram is looking bearish as another challenge of the 1.2060 to 1.2055 support zone looks like a possibility.
The next downside barrier lies up at the fifty (50) day simple moving average in play at 1.2015 with the round number of 1.20 then coming into play.
A daily and sustained close below 1.20 could then open the doors to challenge the congestion zone at 1.1850 to 1.1845 before the euro challenges 1.17.
On the upside, immediate technical support for the euro currency lines up at 1.21. The next upside barrier lines up at 1.22 with 1.2210 then coming into focus. A sustained close above 1.2210 opens the door for the February high price point at 1.2245.