EUR/USD: Failure to breach 1.02 after US CPI to disappoint bulls – TDS

EUR/USD has rejected trend resistance at 1.02 thus far. Economists at TD Securities expect bulls to be disappointed if the pair continues to trade below the 1.02 mark after US Core Price Index (CPI) report. 

EUR/USD remains strongly correlated to global growth dynamics

“We expect 1.02 to be formidable resistance around US CPI, but a failure to breach and/or hold gains above that level post-data could be a disappointment for EUR bull chasers.”

“The next topside level comes in around 1.0350, but this may require a wholesale adjustment to expectations about the EU and global growth. Asset prices remain linked to the latter, which has only worsened and should spark concern about a premature rally in EUR/USD.”

See – US CPI Preview: Forecasts from 12 major banks, inflation begins to ease