Yesterday's American trading session saw the US Dollar gaining some value against the common European currency. The currency pair touched 1,3536. The Euro declined due to positive inflation stats from the USA, which backed the dollar strengthening.
In particular, the Core CPI increased from 0,2% up to 0,3%. The CPI saw an increase from 0,3% up to 0,4% while experts had anticipated 0,2%. Still, the common currency remained relatively strong throughout the day, which made decline insignificant, Market Leader reports.
At this point, on June 18th, EURUSD is trading within the scope of the 1.3536-1.3549 price range , with the Euro moving closer to the top of the range.
It appears that market participants do not want to risk and expand their exposure in advance of major press releases from Germany. This time, it is the 10-year German bond sales. These figures reflect the average yield of the traded bonds. A lower yield would be beneficial to the common currency. The yield has been going down gradually since early 2014. January's figures were close to 1,77%. May's report indicated 1,41% while Aprils' figures improved up to 1,49%.
At the same time, most experts assume that the favorable conditions will continue, thereby allowing the yield to drop further down to 1,4% or lower.
EURUSD
According to Masterforex-V Academy, the H1 chart of EURUSD indicates the following picture:
There has been no major change since yesterday. The currency pair just keeps on drifting inside the 1.3511-1.3578 range. The bearish tendency has been suspended so far as the price is currently unfolding a reaction pattern.
At this point, we can see the price going inside a tighter price range between 1.3536 and 1.3549. Formed during the Asian trading session. We can also see that the price already tested the top of the range but went back inside.
The direction in which the price breaks and consolidates outside of the range will determine the direction of the near-term price move.
Resistance: 1.3549 and 1.3578 + 1.3584 +; 1.3586 + 1.3600, 1.3620, 1.3625 and 1.3666.
Support: 1.3541 + 1.3536 + 1.3530, 1.3520 + 1.3511 + 1.3502.
