The EURUSD currency pair initially experienced a decline following the release of higher-than-anticipated inflation data from the United States, which was part of the GDP report. This drop brought the price below the 38.2% retracement level of 1.0709 and towards its rising 100-hour moving average at 1.06786. However, support buyers stepped in at this moving average and pushed the price back upwards. To maintain a bullish outlook, the EURUSD needs to remain above the 38.2% retracement level and potentially target a swing area up to 1.07314. However, the price encountered resistance today near the 50% midpoint of the April trading range at 1.07425.
The higher-than-expected inflation data from the US GDP report raised concerns among investors about the potential impact on the US economy and the Federal Reserve’s monetary policy decisions. A higher inflation rate can erode the value of currency and lead to higher interest rates, which can have a negative impact on economic growth. The EURUSD’s initial drop reflected this concern, as investors sought safer assets.
However, the subsequent rebound in the EURUSD suggests that support buyers were willing to step in and buy the currency at lower levels. This could indicate that some investors believe that the inflation data may not be as severe as initially feared, or that the Fed may be able to manage the situation without大幅度raising interest rates. The EURUSD’s ability to remain above the 38.2% retracement level and potentially target higher levels will depend on the ongoing developments with inflation and the Fed’s policy decisions.
